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To: LTK007 who wrote (2328)5/12/2008 7:03:28 PM
From: John Vosilla  Read Replies (1) | Respond to of 3906
 
For most stocks to go much higher we are going to need nominal GDP growing at a very fast clip and operating profits growing faster than the added cost of servicing debt in rising rate environment.. Stagflation and my guess we are comparable beginning of 1970's as we haven't yet had the 1973-74 downturn due to tightening monetary policy to combat rising inflation yet.



To: LTK007 who wrote (2328)5/12/2008 7:30:41 PM
From: sea_biscuit  Respond to of 3906
 
Argentina when it was inflating severely its StockMarket was also crashing

Maybe in dollar terms it was crashing. But how about in terms of the local currency? Wasn't it heading higher?

When I said the US market will head to new highs, I was referring to new highs - in dollar terms. NOT in terms of gold or silver or oil.