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Strategies & Market Trends : Short Selling, Dark Side, Bubble Busting Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (310)	8/23/2006 1:13:17 PM
From: Perspective	Read Replies (1) \| Respond to of 361

My problem with that is that XLF was absolutely dead last to go in the 2000 experience: stockcharts.com Topped in the January 2001 pop, almost ten months after the tech index. I think that's due to the perception that Fed actions to fight economic weakness always benefit financials. They usually do; the economy gets propped up at the cost of repeated enrichment of the financial sector. This time around the damage to the asset side of their balance sheet could overwhelm the Fed's efforts though. Perhaps they will go earlier this time, since they are more dependent upon the credit bubble than ever, and the credit bubble itself is what is likely unravelling this time. BC