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

To: jmootx who wrote (63302)	11/28/2000 9:07:15 PM
From: marginmike	Respond to of 99985

The fact is though another 10% down will be pretty safe place to start getting long IMHO

To: jmootx who wrote (63302)	11/28/2000 9:17:12 PM
From: Casaubon	Read Replies (1) \| Respond to of 99985

No! NO! NO! This would happen regardless of the Fed. Up 400% and then down 75% is still up 100%. Sorry if the LTBH people forgot about that part of the time averaging function. History shows average returns between 10% and 12% when using long term averages. Anyone who thought they would somehow defy such time honored numbers was being unrealistic. The Fed has nothing to do with this immutable fact. The Fed influences borrowing not wealth. I'm sorry if people don't understand debt and risk. Ballooning balance sheets with debt is not the same thing as creating wealth. The debt will either be good debt or bad debt but it is not wealth.