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Politics : Ask Michael Burke

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To: Mary Cluney who wrote (48895)2/25/1999 1:14:00 PM
From: Earlie  Read Replies (3) of 132070
 
Mary:
Thanks for the nice remarks. They are appreciated.

None of us are likely going to be able to call the precise timing on this, but here's an amateur guideline that I like. In most crashes, the following things usually occur and in this order:
1. Commodities crater
2. Producers (benefitting from lower commodity prices), either maintain or even increase production. Over-production leads to price wars. Plant closings and lay-offs ensue.
3 World-wide shipping slows
4. Bond prices fall
5 Stock prices tank.
6. Economy contracts

1 through 4 have already occurred.

Best, Earlie
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