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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: John Vosilla who wrote (28666)3/15/2005 4:13:32 PM
From: dpl  Read Replies (1) of 110194
 
The market back then was in a bubble.In a bubble the "real" interest rate means nothing.All that matters is what interest rate will prick the bubble.Most of the time when the yield curve inverts you get a bear market.The Fed inverted in the spring of 2000.Since the market was the most over priced,and more important over owned in history, you got a big bear.

S&P -50%
Tech -80%

We have the same situation now.Real rates mean nothing.What is important is what rate will prick the RE bubble.
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