a quote from the DEAN OF MARKET LETTER WRITERS...LMAOZOFF
"THE PICTURE: I'll tell you what I like least about the stock market picture-- I dont't hear
anybody uttering the dreaded words, "primary bear market." No, here's what they're saying---
"it's happening because "the market was just overdue for a correction," or"Well, the Dow
doesn't look that bad." As for the series of new bear market lows in the Transportation
Average, this is the market's way to telling us that sales and shipping in the period ahead are
slated to contract. The transportation stocks tend to be heavily leveraged: therefore they are
more sensitive to interest reats and forthcoming economic changes than are the Industrials.......
As bear markets, go, this one (so far) has been subtle, ................Unfortunately, the typical
amateur stockholder or fund holder decides that the "the economy looks pretty good" and that
the "experts" know what they are taalking about when they tell you that this is "just a much
needed correction" So the public sits. And the costly attrition continues." From the standpoint
of the big picture, it's critical that you keep two concepts in mind (1) It;s a bear markket, and in
due time the bear will have his way. Thus, you must guard against premature optimism, which
means that you must be suspicious of early hopeful prredictions, and you mus avoid
enthusiasmn regaring the bounces and rallies which will appear from time to time. |
