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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (12878)	1/7/2002 5:03:58 AM
From: Baldur Fjvlnisson	Read Replies (1) \| Respond to of 74559

The Mother of all Bull Markets is in the Process of Spawning the Mother of All Bear Markets...the market isn't getting better it's just getting more dangerous... By: Damon Vickers damonvickers.com If your broker says… "You should think long-term. Since 1925 stocks have always outperformed." - Get another broker! This is a statistical trick. Brokers have been trained to trot out the chart that shows how the market has performed since 1925. Sure, since 1925 stocks have been up. But look closely at the chart. We had a few rough times in the middle. Like the time from 1929 through the early 1950’s. It took 25 years for the market to break-even from the highs in 1929. And then there was the 1966 high. It took 16 years to get above and stay above that high. So when your broker tells you to think long term, think about not making a penny for upwards of 25 years, and along the way being treated to a decline in your portfolio of 50% – 75%. If your broker says… "Now is a great time to buy!" - Get another broker! Why? What is fundamentally different? Has the market bottomed? Or is it just a pause in a down trend? A stock that was 75% overvalued and is now only 50% overvalued is not a good buy. Just because stocks have dropped in price doesn’t make them cheap. If your broker says… "You have good quality investments, they always come back." - Get another broker! Remember Pan Am? Atari? Bethlehem Steel? All top companies, leaders in their industries. Where are they now? .Gone The bottom line is that Wall Street didn’t tell you and doesn’t want to tell you about a bear market. They will continue to deny it’s existence and try to convince investors to hold on throughout the bear with promises of riches just ahead. Brokers are handcuffed by Wall Street and are not allowed to warn clients. They are fed the cliches above to tell the clients to pacify them. They have to "toe the company line." Brokers aren’t paid to think, they are paid to do what they are told. -From Cantella and Company A very dangerous condition is now being created in the market... Parabolics do not end well... I really had hoped that the market would have an orderly decline... By pumping the market up, and not allowing an orderly deflation of asset prices, The outcome both economically and from a human perspective, ultimately could be devastating… Insiders and corporations already know this, that is why Wall Street is helping them, look at all the distribution...they are selling... and the lemmings are buying.