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Strategies & Market Trends : CFZ E-Wiggle Workspace

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To: Galirayo who wrote (8939)10/10/2008 5:50:02 PM
From: skinowski  Read Replies (1) of 41416
 
Why can't we just have a really good Long Drought .. that'll take care of the desire to go long. <G>

It will take a much longer time.

One of the reasons I was interested in that Big year long Leading Diagonal recently was because this bear market will need a few years to do its job - while so far we are on course to complete an entire impulse off the 2007 top in probably less than a year from now. What will the Bear do for another few years?... g/ng.

If we get at some point heavy inflation, then we may get new nominal highs on the major indices which will be totally meaningless.

The worst part of the Bear market that preceded the Great depression was not the 1929 crash, but what followed after a big rally - the decline from April 1930 to July 1932. From that point on, interestingly, the markets rallied - while the economy spent another few years going from bad to worse.
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