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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Lee Lichterman III who wrote (17892)6/19/1999 11:52:00 AM
From: Benkea  Respond to of 99985
 
L3 aka L3:

"is that we could basically stay sideways to slightly down as earnings catch up to the high prices in stocks as valued now."

I am not sure the 7.25 to 9% margin debt (the rate is currently rising) will support a sideways market. IOW - with margin debt so high as a % of total household assets, I'm not sure people can afford to make "payments" on their stocks considering they are already deep in debt to the house, car, credit cards, etc.