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To: sea_biscuit who wrote (15019)9/2/2001 3:04:10 PM
From: lifeisgood  Respond to of 42834
 
Hays doesn't appear to give much weight to sentiment indicators. Indeed, the market has, at times, gone in a direction not predicted by the VIX. I hear this all the time as a good reason to ignore the VIX.

IMPORTANTLY however, the VIX has much greater predictive power at market extremes and I believe we are approaching one now. That is, when the market is trading in a range, the VIX may not be that helpful. I believe it is more useful as a predictor at extremes.

best...

LIG



To: sea_biscuit who wrote (15019)9/3/2001 12:41:46 AM
From: Kirk ©  Read Replies (2) | Respond to of 42834
 
No bear-market has ever ended at P/E levels that are higher than the TOPS of previous bull-markets!

I am pretty certain we are in a massive sector rotation and not a "real bear" as the piano player is still playing a tune on my fav small cap value fund (that fund did 18% last yr and is up about the same this year).

Also, many market sectors, other than the nifty 50 tech stocks, finished their bear in Oct 00 as this chart shows
stockcharts.com[m,a]daulyymy[d19950101,20011201][pb50!b200][vc60][iUb14!La12,26,9]

IF this is a real bear market, then it is not your father's bear market.