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

To: Tommaso who wrote (3139)	5/8/2000 9:33:00 AM
From: Professor Dotcomm	Read Replies (1) \| Respond to of 3339

I guess we may differ as to what constitutes a 'bubble' and what is a major correction. 1968 and even 1987 were, IMHO, major corrections. For a bubble to form (like the Weimar republic in the late 20s, tulip mania and 1929 you need some of these ingredients: - inflation - government deficit financing - warning signs from the gold market or from 'safe haven' currencies - crowd delusion. (I concede you may have something here. There is little difference between not really knowing what a tulip bulb is and what a, say, WAP enabled dot.com is). If the Nasdaq could manage a correction back to around 2500-3000, the warning flags for a bubble could perhaps be discarded. If it does not and the economy overheats (right now it is only hot), then preliminary conditions for a bubble may start to form.