Wallace:
Off-topic
Well I agree with your comments as it relates to the Russell 2000 index, and small caps. They are experiencing an official bear market, and are off 20% from April-May highs I believe.
On the other hand, IBM, LU, CSCO, DELL, AOL, MSFT and the likes are not off very much from their highs. Furthermore, they've all been running like race horses the past few years.
When will this divergence dissipate? I hope soon. Money should start to flow into the small caps if there is any rationale left to this market.
I agree with you on Greenspan and believe that he and Rubin are going to discuss the current situation. If the DOW and nasdaq fall off another10%, this isn't just going to slow down the US economy, it's going to hurt the world's. Hence, there will be some sort of intervention with the Yen currency, and most likely an ease in rates if the markets continue to sell off and the economy weakens.
We have an interesting summer to fall shaping up. Stay tuned.
Regards,
QuadK |
