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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?


To: Justa Werkenstiff who wrote (14818)6/26/2000 11:23:00 AM
From: Hank Stamper  Read Replies (1) | Respond to of 15132
 
Re soft landing and new highs:
"You need to get through the first two hoops (inflation and slower growth) to a soft landing and you will still face earnings problems and tough comparables in 2001."

I think the third factor reducing the possibility of soon seeing new highs is valuation. We are still in a huge bubble. The history of bubbles says it has to pop before we can expect new highs. New highs could take years, I think.

Ciao,
David Todtman



To: Justa Werkenstiff who wrote (14818)6/26/2000 7:58:00 PM
From: stock bull  Read Replies (1) | Respond to of 15132
 
Hi Justa, many thanks for your detailed and well thought out response to my posting. I guess I have one more question based on your response to me.

Given that Greenspan is successful in engineering the soft landing, is it possible for corporate earnings to remain in tact, such that we don't suffer a continuing bear market because earnings are now the problem? Or, is it a given that the rate increases "must" take a toll on earnings? In other words, there really is no such thing as a soft landing because corporate earnings will suffer. Conclusion, we can't avoid a continuing bear market.

Hope that my point is clear.

Stock Bull