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Pastimes : Ask Mohan about the Market

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To: Zeev Hed who wrote (17106)11/18/1998 7:34:00 PM
From: Crimson Ghost  Read Replies (2) of 18056
 
Zeev: Market getting more dangerous each day. Internet stocks continue to soar, the Dow went up another 50 points, but more stocks declined than advanced. New highs in the Dow a real possibility in a matter of days IMHO, but the aftermath will not be pleasant.The higher we go the harder the fall.

Never in the past has the Fed started a major easing cycle with P/E ratios so elevated and the economy still relatively strong. I do believe this is a new bull market, but expect it to be the shortest ever recorded. After a stiff correction we should go to new highs early next year, but that should be the peak. Once bonds and the dollar tank and gold takes off for real, the Fed will not be able to ease any further, and then the REAL BEAR begins.
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