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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 652.56-1.5%4:00 PM EST

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To: Lee Lichterman III who wrote (19262)7/3/1999 10:03:00 AM
From: HairBall  Read Replies (2) of 99985
 
Lee: As often a very good post. All investing is based around sentiment. Fundamental analysis is based around the expectation that others will eventually notice the under valued Company. Thus sentiment based on this recognition will drive the price. It still boils down to sentiment.

There is a myriad of sentiment motivators, but Market sentiment (emotion) is the driving factor for not only equities, but also much of what happens in life.

There have been manias in the past. There have been new eras in the past. Eventually these events conclude, as the Market will eventually punish the exuberance. Those caught at the wrong place at the wrong time will pay the most. This punishment will bring sensibility back in line until the memory fades and investors are ready for another mania.

The fading process can take as long as a generation, maybe longer depending on how severe the punishment. Just note in general the reaction by parents, young adults and even some children that experienced the Great Depression of the 1930's. Yes, the ones that created the wealth in the USA via hard work and saving. Yes the savings that many boomers have been spending.

I believe that all (including Fundamentals) is revealed in the analytics. A reckoning is coming for this Market, exactly when, will be more obvious than most think! Most will just choose to ignore it! In the mean time, take advantage of the rallies....just make sure you don't go on vacation while long...<g>

Regards,
LG
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