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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?


To: Lone Ranger who wrote (3438)7/13/2002 7:39:24 AM
From: Boca_PETE  Read Replies (1) | Respond to of 30712
 
LR: RE: ("people are not making significant changes in their asset allocations ")

Suppose the "Buy-and-Holders" do just that (hold on and not change their equity allocation) for the duration. Does that prolong this cyclical bear, or accelerate a cyclical bull to be followed by another more extreme cyclical bear?

Any thoughts?

P



To: Lone Ranger who wrote (3438)7/13/2002 12:16:14 PM
From: Alan Bell  Respond to of 30712
 
LR,
I found it interesting that people must be taking large losses on their retirement accounts and they haven't been making changes. But in the last month it looks like there has been an acceleration away from equities. Over the next months if the equity percentage drops further, it would show that sentiment is changing and people are turning bearish.

Pete,
In 66-82, the lows of the cyclical bears after the first one were only 22% lower than that first one. So much of the damage was done on that first one. It would be interesting to know the PE ratios at the bottom of bears.