Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Boplicity who wrote (78460)	6/11/2001 11:07:44 PM
From: Alex MG	Read Replies (4) \| Respond to of 99985

What really are the bear vs. bull arguments? And how do they stack up? The BEAR arguments: 1. Earnings still have not stabilized, and show no real signs of a turnaround, only "hope". 2. Warnings and layoffs continue, unemployment hitting 9 yr highs. 3. The slowdown obviously becoming GLOBAL. 4. 18 yr bull that blew out just over one yr ago and hit valuations NEVER before seen. Which means the odds are equities will under-perform for a long time -- Cycles and Manias. (but doesn't mean we won't have some nice rallies) 5. The ol' inflation thing 6. The ol' valuation thing... P/E's still at historic highs and "P"s have been rising while "E"s are still falling. Bad equation. 7. Corporate and consumer debt at historic highs. Credit bubble still exists. *(Actually this one works for the bulls also, see bull argument #7 below) The BULL arguments: 1. Don't fight the Fed! 2. The bottom is in! 3. Many stocks are not going down on bad news. (because you just don't fight the fed) 4. The ol' "new era theory"... it's different "this time". 5. Tax cut, $300-$600 checks... Let's buy more Krispy Kreme! 6. Did I mention Don't fight the Fed? 7. Credit bubble (same as #1 and #6) 8. MariaB has nice lips.