HOLD, HOLD, HOLD, - Mel Gibson Braveheart
Congrats, to those who are shorting and making the big $$$, I wish I had the capital to do so, However All my dough is in at 27 11/16, So I'm on the sidelines with hope. (please spare me all the metaphors on hope...I.e.hope in a brown bag is still an empty bag...etc.,)
so i dug this article up, which makes me feel better and I'd like to share it with others who could use some comfort...
"This is not the first challenge the 5 1/2-year-old bull market has faced, of
course. Recall that in 1994 the Federal Reserve Board doubled short-term
interest rates to slow the economy. When the process began that winter, stocks
plummeted, and the Dow index gave up nearly 10% of its value before
stabilizing.
Does this market feel worse than that one? Interest rates aren't up nearly
as much as in 1994, and the Fed hasn't even officially tightened credit yet. The
Dow is off only half as much....
But to see the beginning of something that horrendous in the current
U.S. market setback, you'd have to bet on a tidal wave of bad news ahead:
sharply higher inflation and interest rates and/or an economic recession and/or a
collapse of corporate profitability.
All or some of the above are possible. But the prudent investor also
should leave room for the possibility that things will work out OK over the next
year--no recession, lower interest rates and quite decent earnings growth for
many companies.
There's another possibility too: We just get a normal (and overdue) bear
market here, temporarily cutting 20% to 40% off the price of the average stock,
before another up-trend begins. "
- LA TIMES 07.14.96
latimes.com |
