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 : Paint The Table -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (6036)	12/11/2001 3:32:31 PM
From: John Pitera	Respond to of 23786

Great article Mrs. Peel..... two points that stick out immediately First, you and I have talked about how big those counter trend moves were, both in price and time in the 1966-1982 time period. That's what's caught people off guard since Sept. Rather, what I envision is a protracted period in which prices are in general decline, but in which there are several, perhaps even many, counter-trend rallies of significance. The mid 1960s through 1982 might represent an analogous period, although I'm not suggesting, at least not now, that the current episode will last that long. and second, as I've written several times on the market lab thread, The central banks to counteract the deflationary bubble bursting, create so much more liquidity. It can theoretically create a macro inflationary rebound. Surely part of the recent run-up in bond yields has been the result of concern the Fed's aggressive rate cutting, and the immense liquidity creation necessary to peg the federal funds rate at the level to which the Fed has reduced it, is sowing the seeds of future inflation.