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Strategies & Market Trends : The Stock Market Bubble

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To: Wren who wrote (2649)2/28/1999 3:07:00 AM
From: Kailash  Read Replies (1) of 3339
 
Dow up to 10000 before dropping?

"Dow 10,000 is likely by the spring, if not sooner," Yardeni says. "Nevertheless, the disconnect between the stock market and the global economy is bound to end badly, in my opinion. I still expect to see a major bear market during the second half of the year." (Deutsche Bank Research, Jan. 19)

The U.S. stock market is not immune to foreign economic turmoil. "Asia matters," Yardeni says. "Latin America matters. Together, they matter a lot. They represent 39% of U.S. merchandise exports. The growth of U.S. exports to both regions combined has dropped from a 1997 peak of 16% to minus 8.8% recently." Sure the Fed bailed the stock market out the last time we were hit with bad news. But Yardeni doesn't expect the Fed to ease investors' pain this time around. (Deutsche Bank Research, Jan. 19)

smartmoney.com
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