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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (75102)	3/29/2007 7:43:23 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

Yes, I did -g- However, I also argued it must happen in the bond market and the currency market, then stocks will follow. Unless earnings really come down, we probably won't see a separate BK in stocks, although who knows - they just might come down. It's mostly financials that grew earnings, and now these Co-s are in trouble. Much of those earnings are not real also, as we have seen with sudden bankruptcies of CO-s that reported very positive earnings for a while. They simply count cash from RE loans as earnings, even if it is not flowing -g-. Is it really that surprising that with lack of REAL cash flows they go belly up after a while?I would wait for the disconnect between stocks and bonds due to higher interest rates and lower dollar before betting on the downside. On the other hand, inverted yield curve also points to something. Stagflation is checkmate for the Fed.