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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 665.67-0.9%Nov 17 4:00 PM EST

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To: Rob S. who wrote (71564)3/9/2001 12:16:21 PM
From: Wayners  Read Replies (2) of 99985
 
There must be an end to the litany of sales and earnings warnings before light appears at the end of the tunnel.

The best gains made in bull markets tend to come in the first six months of a fresh bull market, when profits are still usually declining. So it's difficult for investors to be optimistic when they're staring at a terrible outlook for corporate earnings. But when rates start to decline, that acts as a catalyst in generating buying power because cash coupled with lower rates is not as attractive as cash coupled with higher rates. The current profit scene is not nearly as important as that anticipated.

--Martin Zweig
Winning On Wall Street, Page 126.
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