Hi Bill; I think so too, at least I hope so, I'm sure tired of the knee jerk stuff. If we do go on up for a spell I don't think it's
made the correction it needed to make to be considered healthy.
There are some termites eating away at it, and even the downgraded earnings could turn out to be to optimistic come 1999.
This great Titanic could hit an ice berg, and they took out the
water tight doors when they changed the market triggers to
10/20/30. And like the Titanic if this thing ever goes to abandon
ship status , there are not near enough life boats, and you can
bet not many of the smaller investors will be able to get out,
employee pension funds will be very hard hit.
They will do every thing they can to prevent this until they
can get their hands on the Social Security fund. There is a big
push and a lot of behind closed door pressure being put on
Congress to put S.S. into the market. I sure don't like the
smell of it.
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The British increase in interest rates could also be the ignored
warning about icebergs in our path. Old money that thrives off
interest rates and the spread in them is damm near frantic
to get interest rates back up.
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And I've warned about the rapid increase in both derivatives,
and the index trading that is maintained by huge computer
program trading systems. While index funds show low expense
and not much turn over on their reports, that is a slight of hand
and he huge short & cover ratio is not reported as turn over,
nor is the spread expense reported as expense, as far as they are
concerned. But the rapid turn over of shares ( even if it's just
shorts shorting to others covering ) adds up to a not so
visible overhead on the paper itself, which is now more than ever
traded as a commodity.
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It may not happen soon but without some better regulation this
Titanic will hit it's iceberg.
Jim
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