Fred <<This GreenSPAM news should all be telling you something.....that something is NOT Growth, but Economic DECLINE.>>
backpeddle to late 94, early 95. the world market was supposedly in 'economic decline', the fed had cut rates, most bears and many bulls had exited the markets, and boom, 1995 - a large rally, all year.
the stock prices of many companies in the oil sector, semi sector, and banking sector, are selling at 50% below book, with a notable few trading at 25% to 30% of what the companies can sell their assets for. if 'decline' means these companies should fall further, we need therapists.
possibly more telling is that we're in a double edged economy - the new economy eclipsing the old economy. the old economy represented by the old guard stocks, and the new represented by the Dells, the Rambus, the Yahoos, etc. a 'two economy' model is taken from Carlton Lutts - although Lutts is often wrong on particular stock picks (he's very right, though when he is right) he does have some good points about the new world economy - give him credit for sticking around for 35 years trading his ultra aggressive style while posting some decent overal returns. |
