dax, - I have been the perenial bull for more years than I care to mention, but after having read Barron's yesterday, (online subscription), I don't think I've ever felt more bearish in my life.
The big money is beginning to pull back in anticipation of generally lower 1998 corporate profits. Many traders/speculators are woefully over-extended. The Asian situation is far more critical than most have given credit to. The market has warned us at least twice in the past few months, and I'm going to heed it's warnings. IMO the Dow may test 7200 before the year end, if not shortly thereafter. You can't come away from reading this week's Barron's in anything close to a bullish attitude. We, (U.S. markets), may be about to enter a bear market in the next 1-2 Q's. Asian situation has not even begun to unfold yet, as it will feed on itself and effect U.S. exports and corporate profits in '98. Current IMF Asian "bailout efforts" mere tokenism. Analogy: Asian contagion is to Mexican currency "crisis", as a redwood is to a toothpick . -- I'm worried, and my brow is beginning to look like Marty Zweig's. (very furrowed).
Going to 90% cash/cd's/bonds Monday. Selling half of my mutual funds,(MIT, Affiliated Fund). Taking profits, and taking a golf vacation in Nassau in January.
Just my worried thoughts,
MT
PS, - Aren't you glad you asked? <g> |
