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

To: dclapp who wrote (25173)	9/8/1999 11:33:00 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 99985

>>>>"The more you know about the market, the harder it is to make the right decisions." Unless that's tongue-in-cheek, I can't imagine a statement about the market that I would disagree with more....<<<< I have to say I agree with Dennis. Knowing that PE ratios are at crash levels, that interest rates are climbing etc and all the other bad news over the last year makes one want to stay out of the market. DRAM makers lose money 7 out of 8 quarters and yet they triple in value because this time is different than the other 20 false starts etc. However the market has recently traded down on bad news, discounted it then soared on to even higher levels time and time again. The fat, dumb and happy J6P on the other hand knows nothing of China's most likely devaluation in the coming months, higher rates, stock price valuations out running earnings, computer buying slowdowns etc. They just send in their check to the 21 year old fund managers who have never seen a down market and get rewarded. If the market ever goes to "fair value" the un-informed will be wiped out but the market has continued to thumb it's nose at fundamentals, the Fed and all logic. The less informed you are, the easier it has been to make money. I saw a commercial the other day for a fund where the guy is playing golf and doesn't care if there is a crash because his money is with a "good Fund". If he only knew that the average age of the kid handling his money while the figure head for the fund was out doing lunches and conferences he would be in a bomb shelter, not playing golf. This market could go up for decades but as they say, fundamentals ALWAYS win in the long term. There will be an end to this madness, but until then, stick your head in the sand and buy with both hands for the most rewards is the theme for this game. (*Did I just say that, must be the top!!!!!) Good Luck, Lee PS - The statement about buying was tongue in cheek and I do not advocate taking a blind buy and hold strategy by any means!!!