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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (37513)	7/8/2002 9:29:59 AM
From: j g cordes	Respond to of 68215

The issue of accounting standards is the largest damper on stocks. Nor am I talking about the WCOMS and Enrons.. its the general errosion of standards and credibility from corporatons, accounting firms, to government. At the end of July the US gov will be releasing a re-statement of their estimates on income and GDP. Early glimpses indicate gross overstatement of general profitability and income in the US. The faith underlying investors willing to pay a given price is based on these broad accounting standards.. one cannot say if the market is oversold or overbought without a valid standard. This in large part has sustained the housing market both as a place to invest and a place to put one's money into.. its a tangible asset whose accouting standard is based on what's evident in local sales data.. there's accounting transparency. Corporations and gov data are not. That's the wound which needs to heal before the market regains its footing. Will there be rallies and speculative stocks.. of course there will. The laws of the country favor investing in stocks and bonds for long term capital advantage. There will be great ideas and success stories and that old adage of climbing a wall of worry. But there's an increased credibility gap.