Joe,
Quite seriously, the public has learned from recent
experience that buying the dips always works. In the
meantime, the professionals are selling into these rallies.
This is a manic market as evidenced by Yahoo going to 80,
AOL to 125 and so on. Companies that have good concepts,
but earnings are nil or doubtful.
Did you see Barron's today. Microsoft's market
valuation increased by $40 billion last month, which
was more than the increase in GDP for the whole US
economy. If that doesn't signal a mania, I don't know
what does. All manias end and in my opinion, these
earnings warnings from INTC, MOT, CPQ, and others yet
to come, will be the trigger that ends the bull market.
Regards,
Dave
P.S. BTW, a trigger that's lurking in the background is
the noose tightening around the Clinton presidency. |
