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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: jim black who wrote (1759)1/15/2001 12:54:24 PM
From: westpacific  Read Replies (3) of 74559
 
So many bulls out there, insanity - and all based that Fed is cutting rates and that technology PEs have come down (the problem being that is based off insane levels from last few years).

The question here is were does the economy really stand, the Fed is cutting because the economy is showing signs of ending this record growth curve.

How will the tax cuts factor into the markets if Bush gets his way.

This all leads to a tricky trading environment, I still feel we could have a oneday news event that will shock the markets this year. Thus is your fully invested that could lead to some major pain.

Overall - what has changed, markets still historically high, Fed cutting due to signs economy slowing, Bush panel of CEOs has very negative news on their earnings and business, problems still in ME and Isreal with an election weaks away, so many bulls out there amonst the analysts with very few bears. The market cannot just turn on a dime and that is what the talking heads are trying to sell.

Are we in a bear market rally in technology or has the bottom been put in place for 2001.

West
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