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Strategies & Market Trends : Waiting for the big Kahuna

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To: Bonnie Bear who wrote (14462)2/28/1998 9:03:00 PM
From: Haim R. Branisteanu  Read Replies (4) of 94695
 
Bonnie, on your <<<Anybody who has lived through a bear market will obey the law of book value. Because that's where stocks will drop to in a bear.>>>

Todays book value is not tomorrow book value, best example are REITS, in 1988 price of office buildings or apartments was double of same property in 1993. Today the prices are back at or above 1988.

Conclusion in a real bear today book value may be 50% book value of tomorrow.

So if twice book value is the norm now, do you have a guess of the SPX at book value tomorrow???

Just some thoughts.

BWDIK

Haim
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