Terry:
If I knew the answer to that one, we could both retire in the very near term. (g)
I'm not sure, but it seems as though they started with the "low-life" internet types, then migrated up that chain. They have also been munching away at the lower level semis and even a few PC related types, which is also encouraging. When they dared to kick Cisco down the stairway, then at that point I began to feel that no cow is now safe from a trip to the abbatoir.
Several items provide me with enormous confidence in the general southerly direction of the markets for the next few months at least. Earnings growth, which has been crummy now for many quarters, is really tipping into the tank. Additionally, the accounting cleanup is going to have a very nasty impact on the reported numbers of many firms for the next few quarters. Finally, the massive losses that have already been inflicted on a large segment of the population by this market are already starting to have early stage impact on the general U.S. economy. There will be the normal 6-9 month lag before it becomes apparent to the unwashed, but it is already underway. That, plus the rising rates will slow the economy rather more than anybody is expecting. None of these things are good for the stock market. If one then factors in the normal over-correction that huge margin calls typically engender, it makes for a delightful environment for bears.
Best, Earlie |
