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Pastimes : Ask Mohan about the Market

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To: Crimson Ghost who wrote (17015)11/5/1998 3:30:00 PM
From: Crimson Ghost  Read Replies (1) of 18056
 
The weakness in bonds and strength in gold tells me this will be the shortest bull in history. Should be over by February. But Dow probably will make a new all time before then. Could even hit that magic 10,000 number.

My take is that this bull will not last long once gold breaks decisively above $300 and/or bond yields breach 5.5%. That will signal little room for additional Fed easing.

When we reach that point it is lose lose for stocks. If the Fed eases further, bond yields soar, gold soars, and the dollar plunges. But if they tighten money markets become more attractive relative to stocks.

My scenario is Dow 9300-10,000 by January. Dow 7500 or lower by April/May
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