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To: Sr K who wrote (68078)	6/16/2005 6:15:15 PM
From: RetiredNow	Respond to of 77400

That analyst was talking about a bear cycle and collapse in the oil commodities markets, not in the stock market in general. When oil goes down that provides support for stock markets. Oil acts as a tax on consumers. So when taxes are decreased, consumers can spend more, business produce more, corporate profits increase, PE ratios shrink, stocks look cheaper, and investors start buying stocks, which increases stock prices. Therefore, I conclude that if we are going to see a collapse in oil prices, we will see an increase in stock prices here in the U.S. Large caps are due for a turn, since they are looking cheap and it is late in the recovery cycle which typically favors large caps.