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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Jon Tara who wrote (4956)8/26/1997 4:36:00 PM
From: Timoteo   of 9285
 
Jon, Roger et al: Bear market. FWIW I do not expect a bear market at any time in the near future. I would not be surprised to see another 250 point correction in the DOW, but a true bear would require some major piece of economic bad news or other event. Wage inflation and labor shortages will continue to pressure bond prices, but not enough to create a bear market. High consumer confidence will help keep money flowing into mutual funds. Most investors have no knowledge of 1987 and will see drops as "buying opportunities". I myself am waiting for another 250 or so points before I shift some retirement money into stock funds. A long "stagnant" period will probably shake out some momentum players from our favorite shorts, but I am avoiding shorting quality stocks like DELL because I think the better techs and small caps could move inndependent of any stagnation in the DOW or overall market.

All the Best,

Timoteo
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