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


To: Dave-in-MarinCa who wrote (12)7/2/2000 10:21:39 PM
From: Justa Werkenstiff  Read Replies (1) | Respond to of 10065
 
Dave: You make good references. At the risk of repeating myself, this economy must jump through three hoops to keep this bull running: (1) growth must slow; (2) inflation must be contained; and (3) corporate earnings growth must not be harmed hardly at all given the high valuations found in the market. I see the chances of such an outcome as unlikely. Best outcome for the bulls is a flat to modestly higher market all things considered IMO.

Anybody see Wall Street Week on Friday? Notice how all three lowered their year end targets for the Dow to around 12,000. These pundits aside, if the market surges as some of the other pundits are calling for, I see heightened risks of a hard landing. I guess everyone has forgotten about the Greenspan 6% rule. If one projects a target beyond this, they must assume the Fed. is a big joke. I am not making that assumption. I take them quite seriously. If the market surges, you will see the Fed. back in play in a heartbeat.