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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: stockman_scott who wrote (51459)5/14/2002 11:56:08 PM
From: Jim Willie CB  Respond to of 65232
 
Scott nice summary on stock activity
I listed several zinger topics, plus added a couple

- 10 sigma events? how about numerous 3 sigmas? I expect a couple every year as far as the eye can see

(definition: a 3 sigma event is one that is 3 standard deviations from the norm, the mean, the average... they dont occur 99.64% of the time)

- inflation is just over the ridge, invisible now, but clearly in energy costs and insurance costs, and within 3 years will possibly be raging

- gasoline costs will surely rise, esp with crude oil getting over 30/bbl soon, which will cause a stir, and havent gone away permanently, only in the last month

- credit cards still finance much of retail spending, and cannot continue for much longer, but home equity money also backs up spending... spend what you dont have now, because this is America and I can

- federal spending is keeping the entire show running now, with 2001 deficits of $500 billion !!! keep the bubble economy inflated

- tech declining margins are totally overlooked now, and are leading to steadily declining EPS forecasts

this isnt a wall of worry being climbed
it is a big brick wall, composed of a broken bubble, as strong as 20-feet thick

I find almost tragically amusing this constant
"RETURN TO THE SCENE OF THE CRIME" by tech traders
they know nothing else
the attraction of tech products only entices it further
I love the devices too

and the untold story is that the Federal Reserve has stopped expanding the Money Supply since March
while lenders are much more reluctant to lend new money
the only expansion taking place is margin in the last week
/ jim