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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: jim black who wrote (1550)12/22/2000 1:34:47 AM
From: Street Hawk  Read Replies (1) of 74559
 
"Are there current problems brewing now? Who knows? Saddam, bin Laden, derivatives, a MAJOR bank failure, a RICHTER 9 in Tokyo"

Take out the Saddam and bin Laden thing, and you're talking about 1995, a great year for the US stock market.

The thing about this market is that everything that's wrong is domestic, not foreign. The stock market has always rebounded strongly in recent years to foreign problems, but its never faced any serious domestic problems. LTCM could have been it, but the Fed hosed us down with liquidity while bailing out Merriwether and co. Right now, there are a few things. The credit crunch in telecommunications. Reduction in IT spending. Dotcom fallout. Down cycle in semiconductors. And most importantly, the crumbling of the mania. I don't think rate cuts will fix these things. Only time will.
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