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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Chispas who wrote (39119)10/13/2005 10:49:14 AM
From: mishedlo  Read Replies (3) of 116555
 
Harry Dent is at it again.

A key element of both the Dent and Hays outlook is the observation that most extreme bull phases of the last century -- 1915 to 1919, 1925 to 1929, 1935 to 1937, 1985 to 1987 and 1995 to 1999 -- were preceded by major corrections (or crashes), followed by a strong initial recovery and then a one-to-two-year trading range.

Of course, the implication is that the crash in this case was the 2000-02 bear market and that the recovery rally happened in 2003 and the trading range was seen from 2004 to 2005. Dent suggests that the markets "are simply waiting for signs that the Fed can't tighten much further" and for oil to correct below $58-to-$62 support levels "to suggest a top in that bubble."

thestreet.com
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