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 : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (45736)	8/10/2001 7:02:09 PM
From: ColleenB	Read Replies (1) \| Respond to of 56532

The US consumer is about tapped out, and no amount of interest rate cuts will change that. Whether you're paying 19% or 14% on a credit card debt, if you don't have a job, you can't pay it. You also can't put more money into mutual funds or the stock market. you can fuel the fear even more by realizing that few baby boomers are not adding much to their 401K programs and are living it high on the hog by living with a day to day mentality with instant rewards. Credit cards are not getting paid off and first time home buyers are starting out in homes in the 200K price range and at 95% loans to boot. We live in an age of consumerism and nobody wants to wait and deny themselves as that's not "fun". And the mentality for this age bracket is that to deny yourself instant gratification of that new car, new stereo, vacation etc, is to admit failure and this is not what boomers are taught to project or accept. So, it becomes a Catch 22 proposition and tomorrow is not worried about.

To: Canuck Dave who wrote (45736)	8/10/2001 10:40:46 PM
From: LTK007	Read Replies (1) \| Respond to of 56532

<and that of the S&P 500 is 25.6, twice historical norms> Ed Yardeni projects the P/E for S&P based on projected earnings for the rest of the year to be 45-1 by the end od 2001,based on SP500 present level---now that is scary.Ed Yardeni adds,however,this is the worst estimate of any of the major brokerages,his being Deustche Banc/Alex Brown.Max