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Strategies & Market Trends : Classic TA Workplace

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To: elliottrules who wrote (100481)7/1/2004 1:54:25 PM
From: dpl  Read Replies (1) of 209892
 
When we hit the deflation section of the wave most "things" will fall in price not just an asset that was in a bubble.

We now have a bigger and ,most important, a more leveraged bubble that tech stocks in 2000.Most of the money in stocks has zero leverage.It is in IRA's and 401K's.

RE has huge leverage.Most loans now are made with less than 5% down.Many with none.The amount of equity in homes is the lowest on record.Deflation happens when the last bubble bursts.Now maybe this bubble could get so big and crazy that it would last several more years.This simply would mean that you would have a bigger bang when it bursts.

PS. FWIW..I believe that the 2000 high was a secular high in stocks which will last several decades.

David
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