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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.97+0.1%Nov 7 4:00 PM EST

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To: HairBall who wrote (47743)4/22/2000 11:30:00 PM
From: Zeev Hed  Read Replies (2) of 99985
 
LG, of course, in such a short post I had to simplify things a little, the cheap labor is one major element, replacement of labor with machines is another, lowering the cost of capital utilization in an enterprise ( with the help of computers that allow "in time inventories", management of working capital and thus its relative reduction, and better production planning reducing write off of obsolete production is yet another). Finally, the migration of a larger proportion of the US working population to work with their brains rather their brawn is also a major contribution to the unprecedented increased productivity.

All that does not negate my general view that we are standing before a relatively long period where the market will be bound between about 13,500 on the top and about 6000 on the bottom (on the Dow), a period marked with few periods of real nasty bear markets followed by sizzling bull markets. But the reasoning for that cannot be elaborated in such short posts.

Best Regards,

Zeev
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