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

To: t2 who wrote (78439)	6/11/2001 3:02:43 PM
From: Zeev Hed	Read Replies (4) \| Respond to of 99985

NV, I have seen somewhere (and I cannot remember where) some statistics on bull markets following fed rate cuts. What struck me is that 6 and 12 month later after four cuts, the advances where (on the average) in the 10 to 20% over the periods, but id there was a string of five cuts, the 6 and 12 months advances where much shallower, except for 1982, when the S& was sporting a PE of 7 (1/3 or less than the current PE). Considering that we already had a 40% advance in the Naz, and a solid 20% in the Dow (from 9100 to 11,400), could it be that we got most of the fed's induced rally under the belt? Could it be that when the fed must relax more than 4 times in a row, the economy is in such a bad shape, that the market do not recover that fast? Zeev