John, FYI
By Kevin N. Marder, CBS MarketWatch
Thu Mar 19 16:30:07 1998
New: Bond Report
NEW YORK (CBS.MW) -- U.S. stocks rewrote the record book for the fourth consecutive session Thursday, with rebounding energy issues getting an assist from an improving technology sector in lifting share prices to fresh heights.
The Dow Jones Industrial Average advanced 27.65 points, or 0.3 percent, to 8803.05.ÿ The barometer has surged 18.2 percent, or 1355.66 points, since Jan. 12 on waning fears of declining corporate profits growth.ÿ
"This is the biggest mania in the history of the planet," said longtime bear Bill Fleckenstein of Fleckenstein Capital Management.ÿ "We're in what I think is the total blow-off, speculative part of the phase.ÿ I don't know how much higher it can go or how much longer it can last.ÿ
"But whenever it stops it's going to be the start of a debacle," he warned. ÿ "People don't care about what the businesses do anymore, they don't care what the earnings are, they don't care what the valuations are.ÿ It's about money flow, momentum, and mood.ÿ And when you can say it that way, it's a wild, speculative blow-off.ÿ And that is unhealthy."
"We've reached a level of excessive overvaluation that was reached in May 1990 and September 1987," said A.C. Moore, chief investment strategist at Principal Financial Securities.ÿÿ "This accrues from our work on earnings, cash flow, interest rates, and stock prices and has been followed by double-digit declines, often at least 15 percent to 20 percent."
"We've suggested that 25 percent of portfolios be held in cash, which is a lot," he added.ÿ "We view markets as being in a mania stage, with buying going on simply because the market's going up."
John. I guess its time to throw in the towel. Cash may be the
best bet as I think the long risk is too high. |
