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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (3121)	5/5/2000 3:33:00 AM
From: Dale Baker	Read Replies (2) \| Respond to of 3339

During the April drop, many people commented that being able to follow their stocks online and access their online brokers (almost all stayed up throughout) kept them from panicking. The fund managers sold, expecting heavy redemptions that never materialized. How do you crash a market when the average participant doesn't sell in a panic? We don't live in 1929 now - even 1987 is thirteen years of dramatic technological development behind us. Uncertainty is the key word that another poster used. Once we get past Fed rate actions and everyone settles down, earnings and technological growth going forward should set the tone again. Draw a straight line on this chart (http://quote.yahoo.com/q?s=^IXIC&d=my) from the 1987 drop to today's close. Looks a lot like a market that regresses to the mean every time it gains or drops too much too fast.