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

To: Eurobum1 who wrote (23926)	5/19/2001 11:59:59 PM
From: DebtBomb	Respond to of 37746

Hope for Sunshine, But Clouds Persist But this ``show-me'' market is telling Greenspan that it first wants to hear good news about the economy before it blows the all-clear whistle. The reason: It takes up to a year for lower interest rates to filter through the economy. The first cut came on Jan. 3. Another reason that stocks have failed to sustain a strong comeback after this year's rate slashing is that the price-earnings or P/E of the Standard & Poor's 500 remains unusually high at 25. ``Bear-market bottoms have never occurred anywhere near 25 times P/Es,'' says Hussman, publisher of Hussman Econometrics, a research report. ``Bad things tend to happen when you've got the market at 25 times earnings.'' Then, there are the U.S. consumers who took on new debt at the slowest pace in a year and a half in March. If this pullback becomes a trend for this consumer-driven economy, it may remove the only leg that has steadied the world's biggest economy. Business spending, the other major economic prop, has been deteriorating for the past year. THE ``R'' WORD THAT PEOPLE DON'T WANT TO TALK ABOUT ``There is a recession that virtually every economist denies despite a laundry list of signposts that always and only occur in recessions and a market that fails to generate levels of trend uniformity that have been easily achievable in legitimate bull-market advances,'' says Hussman. biz.yahoo.com