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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 671.910.0%Nov 14 4:00 PM EST

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To: pater tenebrarum who wrote (54317)6/15/2000 8:44:00 PM
From: Saulamanca  Read Replies (3) of 99985
 
Heinz, He said the markets are in a substantial disequilibrium right now. We`ve had a fantastic boom in the new economy and internet stocks then a break. He never said bubble, he called it a boom. <G>

He said the internet and the new economy stocks could have a 2/3 retracement of the declines then go into the protracted decline. Not the S&P though.

If the economy slows down the old economy stocks might do quite well. With biotech offering opportunities. This may well be a stock pickers paradise.

It does look hopeful for a soft landing. As long as productivity gains can be maintained while volumes are reduced, then he thinks we will have soft landing. If productivity declines we may have a lag effect where inflationary pressures come in while the economy is slowing, then the Fed will be obliged to keep raising interest rates and we could have a hard landing.

--Jim
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