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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: The Ox who wrote (29258)3/10/2006 3:00:42 PM
From: Return to Sender  Read Replies (2) | Respond to of 95761
 
>One of the major differences in today's world is that there is a ton of money sitting in coffers around the world that wasn't there back in 2002.<

The savings rate of the average American is now lower than it has been at any time since the Great Depression. The average American is spending more than they make:

dfw.com

fool.com

Also recent fund flows have reached extremely high levels which often corresponds to market tops:

geocities.com

I'm not saying the market is doomed. All I am saying is that we will get a cyclical decline. If consumers slow their spending it will hurt. If corporations don't loosen up their hoards of cash and spend to keep the economy going then estimates will end up falling. Stock prices will fall in advance of a lot of this. Many months from the top we will have legitimate comparisons to October 1998 and October 2002.

But today's market is little like that was now.

RtS