Ask Mohan about the Market Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joan Osland Graffius who wrote (12274)	12/24/1997 10:33:00 AM
From: Zeev Hed	Read Replies (4) of 18056

Joan: I think I have explained before that I view this as a minibear market or a cyclical bear market, not a secular one. The reasons for this bear market are excess capacity which are being addressed as we speak by the market. I expect capacity to be taken off line (in cars, steel, semi and even gold) and a balance reestablished. Once that happen the basic fundamentals which in my opinion are fueling the secular bull, a steady increase in the consumer society, no major flash points and thus a good 5% of GDP not spent on defense and going into productive uses, by all the major nations. The readjustments we are undergoing right now will not lead (at least here in the US) in a major deflation (more than 3% decline in prices) and a mild deflationary environment (while detrimental to corporate profitability) is actually good for stocks since it will bring down long term interest rates which are too high relative to an overstated rate of inflation. Thus, after a minibear which will lead us to the low 6000 in my opinion, the stage will be set for a powerful move up because stock will be priced attractively relative to bonds and other investments alternatives. Zeev

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next