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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (2103)	11/13/2003 6:02:50 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Rather i see plunging bonds triggering plunging stocks. We are in agreement on that. Ultimately. Not now. M

To: Crimson Ghost who wrote (2103)	11/13/2003 8:47:58 PM
From: t2	Read Replies (3) \| Respond to of 110194

I happen to think that stocks will not drop much until bonds do. Obviously I am not looking for a replay of plunging stocks triggering higher bonds. Rather i see plunging bonds triggering plunging stocks. Can't get a double bubble to pop at the same time. If bonds collapse, stocks have to go higher--reverse of the 2000 to 2002 effect. I see it this way; growth in the economy--inflation--yields moving SIGNIFICANTLY HIGER (ie. bond bubble burst) That would set the stage for a stock market decline. My thinking is that there are just too many steps along the way before we get there--could be a 1 to 2 years away before the equity collapse. In the meantime, major surge higher in stocks, especially Nasdaq, happening along with a SLOW RISE in rates. Long stocks and short bonds seems like a good strategy to me.