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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Steve Hallam who wrote (4464)4/5/1998 8:30:00 PM
From: marc ultra  Read Replies (1) of 42834
 
Re:sentiment, from a recent brief review on Wall Street Week looking at recent times when sentiment got over 70% (the usual bulls/bulls +bears)
1/5/73-80.3% Market dropped 45% in 23 months
12/31/76-90% Market dropped 26% in 14 months
8/21/87-76% Market dropped 36% in 8 weeks

What does this mean? Were conditions the same? Absolutely not but keep in mind the fact that sentiment was so high means people thought things were great just like we do today. What we also have today is all time record high valuations. As Bob mentioned one of the best things that could happen now is a mild correction dampening sentiment and hopefully allowing the bull to continue but this is clearly a risky market now. One thing about "Jerry" he is somewhat correct in saying Bob rarely admits he screwed up, the only problem is I can't think of any time in recent history he's been wrong about the market. Now if he makes a bogus Lady Elaine type cll then we'll get to see how he handles it. I think we may be waiting an awfully long time for that though.

Marc
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