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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: sam_o who wrote (55970)7/3/2000 4:56:09 PM
From: pater tenebrarum  Read Replies (3) | Respond to of 99985
 
since it is impossible to say when it will burst (although we have seen a marvelous first step with the April NAZ deflation), simply try to hedge your market exposure at overbought extremes if you're a long term investor. that way chances are you won't be surprised by the event. private sector debt in the economy has been growing much faster than the economy itself for years now, and continues to do so...the inescapable conclusion is that a natural limit of this process will be reached at some point. most likely an as of yet not foreseeable event, or economic datum, will negatively impact confidence and kick-start the deleveraging process.
at which point the debt laden corporate and consumer balance sheets will become a huge albatross around the economy's neck, and the bubble will deflate accordingly. if i knew when exactly, i'd tell you...

regards,

hb