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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Druss who wrote (6056)	1/14/2000 12:36:00 AM
From: Bill Wexler	Read Replies (2) \| Respond to of 10293

The problem is that the market has become so entwined with the spending habits of a lot of Americans (Yipeee...my CMRC went up another 80 today! Honey let's buy a Mercedes!) that it really needs to be looked at carefully. I know that in the bay area, there are people who bought homes for $200,000 just a few years ago, those homes are now worth $500K or $600K (there goes the "no inflation" theory). What they are doing is taking out huge home equity loans and plowing that money into the stock market. Unfortunately, their incomes have not really kept pace with the rise in value of their assets. If there's a REAL market break (and I don't mean the 10% to 15% burps that we've come roaring back from time and time again) there are going to be a lot of people in a world of hurt. When I saw that the stock market was not reacting when the bond yield slipped across 6.7% I became very nervous. I believe that stocks are the best investment vehicle over a lifetime, but there are times when the market offers you bargain prices and there are times when prices get insane. The interest rate trend is now flashing the "insane" warning. Interest rates at these levels speak much louder than all the Abby Joseph Cohens, Joe Battapaglias and Jim Cramers in the world.