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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: sun-tzu who wrote (131689)10/29/2001 5:20:08 PM
From: patron_anejo_por_favor  Read Replies (2) of 436258
 
<<while your downside targets may be dead on, i think we also have at least 10 years of sideways action after that point. when looking at mean growth on all major indices from a monthly perspective, we are at historical highs with regards to the 50 and 200 month moving averages. that takes years and years to work off.>>

Quite possible. And I think that while the sideways grinding goes on, that gold will rock our world as the Fed does what it does best, tries to reanimate this corpse of an economy with "liquidity"...oil, timber, natural resources will all rock if they're successful at halting deflation. Gold will rock whether they're successful or not.

Fleck and Asness have made the point repeatedly that even if we've hit the nadir for profits growth, the subsequent anemic recovery will produce a massive PE contraction for all the major big cap indices. I think this view is correct.
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