To recall it, on Saturday past, Brinker reiterated his view that
the "big money has already been made in this market" and cau-
tioned investors not to expect gains greater than 8 to 10 per
centum per annum going forward. Further, despite the recent
decline in the DJIA, Brinker cited a S&P 500, which itself "re-
presents 70% of the market," as "only 2.5% below its all time
high" and, therefore, laden with risk, especially, for those who
would foolishly eschew dollar cost averaging in favor of a
"whole hog" approach.
Noteworthy, perhaps, was Brinker's assertion that he sees little
chance of a bear market beginning until the third quarter 1998.
Seemingly, this is a change from Brinker's prior declaration of
bull dominance at least until the fourth quarter 1998. (From Sun-
day, "There is no chance of a bear market this summer....I don't
think the bull market is over. I think we are going to see new
highs in this market.")
Additionally, Brinker opined that small caps would continue to
languish for reasons pertaining to liquidity or the lack thereof
with respect to that market. According to Brinker, world-wide
investors are leary that the Asian financial implosion might be
the catalyst of a global depression and, therefore, prefer the
liquidity associated with those big caps which "trade like
water."
Ps. Many thanks to Mr. Brinker for reminding us of Thomas Huxley's
(1825-1895) original proscription as regards to "eating your cake and
having it to," the popularity of the errant transposed version notwith-
standing.
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