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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: TREND1 who wrote (11325)1/20/2000 10:34:00 AM
From: MrGreenJeans  Read Replies (2) of 15132
 
Larry

But "the market" is saying the BULL lives.

Yes, at the moment, but the doctor is entering the room to perform a surgical procedure on the economy, that is, slow it down in early February. The doctor will probably have to perform another procedure in March and after evaluating the post operative results may have to perform more surgery in the months ahead. The very real risk you take here is that Dr. Greenspan raises rates to induce a mild or more moderate recession and we all know what that does to equity prices.

Another thought is if you wish to get out at or near the top of the market, or before a significant correction, you must sell at or near the top of the market which is always a difficult call psychologically and materially.

Finally, if the market was to correct to let's say 7500 such as it did a year and a half ago do you really think Greenspan will cut rates again? (Not a chance.) And what is the probability the market meanders around the bottom for a prolonged period of time.

A lot of questions. A lot to think about. No straight forward answers. No easy solutions.
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