If it drops that low, I'll be buying alongside you.
A full percentage point rise will certainly slow down
the techs but stop them? I'm not sure about that.
I keep thinking moose pasture when I read what it is
that many of the techs have got, it's just new type
moose pasture. My guess, for the moment, is that you
are right. We may, because I see prices dropping for
blue chips, on a broad front, see a pretty wicked
drop before we get a bottom. Should have kept my powder
dry. Ah well, after that last buy, I've been piling
up cash. Glad I didn't listen to my broker who was all
for being fully invested.
Memories are short. I remember going to the Credit Union
and overhearing people demanding 200,000 dollar mortgages
with ten percent down, then later seeing endless lists
of houses being offered at fifty cents on the dollar
because interest rates had run up to nineteen percent
and 190,000 at 19 percent couldn't be paid.
The bias in the public is that whatever exists will
always exist, trends will always continue. If the
inflation genie breaks out, I doubt if one percent will
be the top. The Euro is being trashed. God help anyone
who went long on the Euro and held on. Remember the
hype about how stable the Euro would be and how it
would revitalize Europe?
I no longer trust any government figures regarding
inflation. Check out newspapers from the last 3-5
years for common consumer items. Look at price and
volume or weight for price. The govt. has, I believe,
buried inflation figures by fixing the basket. Put
computers into the basket, use that to obscure the cost of cereal,
chocolate, meat, vegetables, fruit, etc.
Sackcloth and ashes. I hope we don't get our fills at
12 and 14 but if we do, so be it. |
