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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?


To: Wes Stevens who wrote (22555)5/12/2001 6:09:11 PM
From: interesting man  Read Replies (2) | Respond to of 37746
 
>>It will make the market go up. The fed did this the second half of 99 and it was a big reason for the bubble.

This is just my opinion only and please dont try to make any thing out of this, but the second half of 99 was the beginning of the campaigning trail for the whitehouse. What a perfect way to get the Democrats reelected than to create a bubble. Get the stock market screaming. Of cource they fell a few months short before collapse. If the republicans are smart they would not want to create another bubble until November 2002 at the earliest in order to claim victory for restoring the stock market and most important flushing out the crap now by still blaming the Clintonites for the slowdown. By creating another bubble now that pretty much spells defeat for the Republicans in the next election when the market crashes again just in time for the voting.

This is just ONE reason of many why I am short term bearish, especially in techland for the next 2 years anyways. There are many more reasons that make a heck of a lot more sence then which I just named to be bearish short term (Economic Fundamentals), but this just crossed my mind.



To: Wes Stevens who wrote (22555)5/12/2001 7:24:24 PM
From: DebtBomb  Respond to of 37746
 
Wes, I disagree, we've had 4 rate cuts in the last 5 months, 200 basis points, increased liquidity and look at where the Nasdaq is, nowhere since the first cut and increased money supply. In the second half of 99 we didn't have declining earnings, slow growth, high valuations, squeezed margins, high energy costs, a collapsed bubble, negative savings, record high debt, destroyed wealth effect, etc.. So, IMO, this time is very different. While I agree that easy money will help with some spending, the price wars and squeezed margins won't help earnings. And, much of the extra cash flying arouind is going to energy costs. The market could go higher, but I'm not banking on it. I agree there has to be a limit. Just my opinion.



To: Wes Stevens who wrote (22555)5/12/2001 7:34:48 PM
From: LTK007  Read Replies (2) | Respond to of 37746
 
wes,i agree with Dale strongly overall,BUT i am on the ready for a possible significant into summer rally based on the PERCEPTION that this will make all well(the rate slashing,etc.).When this getting all well perception is crushed,then we go back to a severe down market.
But i am not sure this rally will occur as the market TA for the moment is weakening significantly,after having been locked in a ascending triangle that it lost last week.FWIW.max



To: Wes Stevens who wrote (22555)5/12/2001 7:38:29 PM
From: LTK007  Respond to of 37746
 
<The only problem here is that the US consumer is so deep in debt, there has to be a limit.> i have been reading about a phenomenon called "consumer rollover"(or "consumer exhaustion"),it is said to be historically a sharp transition,and falling into negative savings can be a precursor of said event.max