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

To: SouthFloridaGuy who wrote (73197)	10/30/2006 2:04:19 PM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

Housing woes will stimulate other parts of the economy which are not overvalued if the Fed so chooses to continue its path of cheap money, much like housing was stimulated in 2000 when stocks and corporate spending fell. You're forgetting a few small facts. Remember when the Fed lowered fed funds to 1%? Remember when the S&P500 dropped 45% between 2000 and 2002? Those buying the S&P500 at 1500+ in 2000 because they knew the Fed would lower rates and cause a housing bubble had to stomach a 45% loss and still aren't back to even. If you must, buy large caps. I recommend you load up on Google, Goldman, Citigroup, Merrill Lynch, Cisco, and GE.