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To: Lucretius who wrote (43705)10/24/1999 10:38:00 AM
From: goldsnow  Respond to of 116762
 
The rosy scenario for stocks and the dollar may come to an
end if speculation builds that U.S. economic reports this week
will signal quickening inflation and prompt Federal Reserve
policy-makers to raise interest rates. Expectations for higher
rates have hurt stocks in recent months.

The government unveils the employment cost index and gross
domestic product for the third quarter on Thursday.

quote.bloomberg.com



To: Lucretius who wrote (43705)10/24/1999 4:58:00 PM
From: Rarebird  Read Replies (2) | Respond to of 116762
 
< The indexes still have to crash and catch up with the rest of the market which is sitting on 1994 and 1996 valuations. At some point they will.>

The Question here is Liquidity and Confidence in the System. At what point do these evaporate? At what point does a nice portion of The Money that continues to pour into the indexes from 401K's and Pension and Gov't Funds get transferred into Bonds and then Gold?
After last Summer's/Fall's decline, I think it will take at least a 20% decline before any substantial transference of assets takes place. I see the indexes trending lower till the Millenium. I see an acceleration of the downtrend taking place very early next year.
There is still too much liquidity supporting the Indexes to expect a crash right here and now- though the fundamentals do support such a move. Where is the Fear?