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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Justa Werkenstiff who wrote (36085)3/2/2002 8:10:47 PM
From: Psycho-Social  Read Replies (2) | Respond to of 99280
 
History re Economic Contractions and Bull Markets:
History says that the overall stock market just about always bottoms before the economic trough, not the end of the recession, but the month(s) of most economic contraction. This time around, late Sept was probably the worst of the contraction, so the Sept 21st Market bottom was already later than usually occurs. Given the rapid recovery taking place in the economy, it would be most unusual to make a new Market low. That being said, the Nasdaq is not the stock market, although it seemed it was for a time. It does seem that the sector rotation away from Info Tech/Nasdaq hasn't yet run its course, and the Nasdaq will continue to underperform for a month or more.