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Strategies & Market Trends : The Stock Market Bubble

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To: pater tenebrarum who wrote (3212)6/1/2000 11:09:00 AM
From: The Ox  Read Replies (1) of 3339
 
Anyone who thinks that there will no longer be any more bear markets are fooling themselves, almost as much as those who called for a 90% drop in today's market.

I've never subscribed to the theory that we are in a 'new market' that won't be subjected to sustained downtrends. We all should know that the market has a tendency to overreact, in both directions. If the FED continues it's current policy of raising rates aggressively, this market won't be going much higher, or if it does go higher, it won't be for long. At the same time, if the FED is done tightening or decides to change it's monetary policy, this market will most likely move north.

I just don't buy into the crash and burn theory that this market is so overextended that the only course left is a meltdown.

Michael
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