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Strategies & Market Trends : SiliconInvestor All Stars Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (1258)	8/14/2007 6:43:24 AM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 1718

Big caps will show the most relative strength because restrictions in credit adversely affect smaller cap companies. A good relative value trade is 2/3 Big versus 1/3 short Small with any degree of leverage you wish. Those with stellar balance sheets will still be able to tap the market. Avoid financials, of course. The housing bust has just begun, IMO, credit restrictions only began in June. Look for unemployment to begin its march up. Price decreases will eventually be mitigated by global rate reductions, but that's a ways out. The pricing of the ABX for this half of the year will be interesting, unfortunately it's still a few months out.