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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?


To: Lizzie Tudor who wrote (15906)1/24/2003 2:26:29 PM
From: fedhead  Read Replies (2) | Respond to of 57684
 
I was pointing out that the low VIX was a sign of complacency to the bulls. And the bulls all came back with
sentiment indicators are all a matter of some flawed statistics and the economy had bottomed etc etc. Well we have been hearing the same story about the ever so close recovery for the last 2 years. All it has done is kept people in the market when they should have been selling. Well it turns out that following the VIX has been a pretty decent strategy. Buy when it is above 50 and sell when it is in the 20's. Can't get simpler than that.
As for Bush , he might have a short term effect on the market. The problems with this economy and markets are longer term in nature and deal with the debt bubble, over capacity, lack of pricing power etc . They are not going to go away even after a short war as most people think. This is
an extended bear market that won't end till most people do not want to have anything to do with stocks. There will be
sharp rallies that will only perpetuate hope and keep people in.

Anindo