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Pastimes : Home on the range where the buffalo roam

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To: Boplicity who wrote (5208)12/31/2001 2:04:11 PM
From: Jim Willie CB  Read Replies (2) of 13815
 
January Smallcap Effect up next
happens almost every year
poorer liquidity hurts them late in year,
but helps them early in new year
window dressing dont include them much late in year,
but search for gains helps them early in new year

any opinions on this effect, Mr BoPeep?

I think energy will stage a nice comeback in early months this new year
with growth stocks participating significantly
and security stocks of various kinds doing well
(facility, cops, computers, ecommerce)

but by autumn, a real sorry selloff for techs
as prospects of Fed tightening become very real
GreenScrotum will want to get rates back in line before he imagines more inflationary ghosts
of course, deflation is the more certain threat as Japan and Asia implode
(all except China)

gonna be an interesting year as we observe the recovery
I expect it will be less robust than expected and portrayed
monetary and fiscal stimulus has saved us from much deeper recession imho
USDollar is too strong to enable real strong recovery
wreckage like Japan and Argentina must be cleared first

would love to hear your opinions
thanks
/ jim
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