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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (21252)	10/9/2000 5:18:33 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

It's too late to be careful. Sheesh, Naz was down almost double digits....last week!!! Hoping to avoid a market crash on Y2k mania, at the end of 1999, the Fed abstained from raising interest rates and orchestrated an incredible stock market run. We're on the other end of the roller coaster ride now. Investors are now looking for realistic measures for evaluating stocks, turning our heads to earnings. Market is spooked by earnings worries and every negative factor has been overblown. The market correction is necessary. This is a good thing, necessary to compensate for the run up orchestrated by the Fed at the end of last year. There was an interesting article in last week's BizWeek that cited the only factor that could create inflation in our economy is the trade deficit, but that it isn't a concern just yet. The rest of the planet isn't ready to threaten our economy. Outflow from our markets is not going overseas. The Euro $ needed intervention to keep it from sinking to new lows. Asia's economy is going through a second banking crises. Latin America's economy is just footsteps behind Asia's. Europeans being short the US market right now? They've been hedging their Euro losses in our market. They can have more fun shorting their own stocks. The price of energy has been a problem, but its a case of supply and demand. Supply is short because demand was short causing a decrease in production and exploration. Exploration and production have been stepped up. As the supply increases, the price will subside. Oil sector stocks haven't risen proportionatly to the commodity, because investors do not see the price spike in the commodity lasting until even next year. It's been a mean pre-earnings period. Let's get the meat and potatoes on the table and see what we're dealing with, then we can decide if the market is %$67^!!!$0(* or not. Let's see some earnings reports before we cry that the sky is falling. Sergio