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Politics : High Tolerance Plasticity

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To: Warpfactor who wrote (5514)6/28/2001 12:58:54 PM
From: energyplay  Read Replies (1) of 23153
 
Cramer's ulterior motive - If he saves you some money you'll subscribe to TheStreet.com

Most mutual funds are still heavy in tech. Tech has long term structual problems of 1) way too much capacity built for the bubble economy, 2) Near term lack of demand and 3) Stock valuations based bubble economy unit volumes and prices.

The Feds actions, lower energy prices, etc. will get item 2) back in a year to 18 months. The over capacity make take years to fix in some sectors. The valuations will come down some more, and the mutual fund redemption cycle will start.

Most people don't follow markets everyday like we do on these boards, especially if they are in 401(k) and IRA type plans. Some plans only allow you to change once a month.

So if there's a big drop in September, this is a useful warning for many people.
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