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Pastimes : Ask Mohan about the Market

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To: Bilow who wrote (15224)3/27/1998 9:18:00 AM
From: Bonnie Bear  Read Replies (1) of 18056
 
Carl: yes, our bears will have their days.
I see raging inflation in real estate prices and salaries- I think the feds will be forced into an interest-rate hike. Greenspan has been here before, and when he starts he always overdoes it.
I'd like to play along as long as this lasts, so I'm sticking with the microcaps and smallcap financials that make money on credit-card debt and the flood of new mortgages. I don't think this sector will crash because there's a tremendous amount of money already pulled out of the market and sitting in low-risk investments, and they're quite cheap and a target for industry consolidation. I don't think the whole market will crash- but certainly the big-cap techs, the dow and some of the S&P. I don't own any big-caps- the biggest thing I have is Bear Stearns at p/e of 11.
There's WAAAAY too much money here in Silly Valley- the money won't disappear, it will just move. Stick with bottom-feeding, it should be quite safe.
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