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Strategies & Market Trends : Sharck Soup

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To: mish5000 who wrote (31490)7/20/2001 7:43:50 AM
From: ChrisJP  Read Replies (2) of 37746
 
Ummmmm ..... mish5000, although I've been a believer that we've been in an irrational bubble since 1999, I need to point out one or 2 big flaws in the slides near the end of that set you posted.

1. The magnitude of the DOW and S&P 500 bubble was smaller than the NASDAQ. The bubble was mostly in the NASDAQ. In fact, old economy stocks actually suffered at the expense of new economy stocks.

2. The DOW and S&P 500 have re-adjusted which companies are in their lists MANY times, typically swapping in winners and swapping out losers.

So the NASDAQ may return to 1000, but the S&P 500 is not going back to 100, lol. I would guess that unless things really get bad, a good target for the S&P 500, based on extrapolating a trendline from 1991 - 1995, is about 900 - 1000.

quote.yahoo.com^SPC&d=c&t=my&l=on&z=b&q=l

Regards,
Chris
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