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Strategies & Market Trends : Quarter to Quarter Aggressive Growth Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (5515)	2/11/2008 9:51:55 AM
From: richardred	Respond to of 6929

I agree on that. Message 16625586

To: Rarebird who wrote (5515)	2/11/2008 11:02:34 AM
From: Rarebird	Respond to of 6929

As a transcendentalist, I always look at these Markets from diverse points of view and try to remain objective. The bullish argument seems to be based on the fact that Bernanke and company have their foot on the gas and it's best, for now, to stay out of their way and where prudent, go along for the ride. I don't buy that argument because I think the Fed is irrelevant. I said in August, "the time will eventually come when the borrowers are afraid to borrow and the lenders are afraid to lend." siliconinvestor.com The issue here is not the cost of credit, but its availability. The broad economy is stronger than most investors/traders think, but needs to have the financials start working again. The problem with many growth stocks, as Bentham pointed out in Barrons this past weekend, is that they are currently operating with abnormally high profit margins which could decline by 20%-30%. Nice divergence in SMH and QQQQ today. However, these markets have gotten hit very hard and are in Bear Market territory in terms of losses, so the fears have been realized for the short term, liberating some traders to buy. The S@P 500 and Dow need to fall further before a longer term bear rally can take place.