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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?


To: Proud_Infidel who wrote (1070)6/11/2002 7:39:43 PM
From: Jerome  Read Replies (1) | Respond to of 25522
 
Economic Recovery vs Stock Market Recovery....Are they going separate Ways ?

In times past (last 20 years or so) there was more than a casual relationship between the economics of the country and the stock market. Now even after announcements by everyone including Dilbert we know that the economy is healing....but not the stock market.

Are there any good theories by our thread viewers as to why this is taking place?

Historically this has happened before. Depression in 29 and market recovery after the war. Every boom and every bust has a different flavor to it.

Fow what its worth here is my take on the matter. It has been said that over a trillion dollars in American wealth has vaporized in the past two years. The American investor has been lied to by companies and brokerage firms alike. This being the case there is absolutely no reason why any investor sitting on the sidelines would feel inclined to jump back in. The lack of stock buyers is like a plague, and if you have read a bit of history you know that plagues take a long time to run their course.

I would be interested in hearing other viewpoints on the reason for the divergence in the the economic indicators and the stock market direction.....

JMO....Jerome