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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: mister topes who wrote (1845)	10/26/1997 12:55:00 AM
From: Alan Bell	Respond to of 42834

Bob has certainly been making the point that the market would have a tough time going over 9000; I hadn't realized that it might extend well into '98. Thanks for the clarification - this list and Bob's show have been imensely educational! This raises a few other questions I would enjoy seeing discussed - What is the relationship between GDP and earnings growth? Is the difference productivity? Would it be possible to have increased earnings growth while the economy (GDP) is slowing down? We have learned that PE stays in the range of about ten to 20 and that interest rates and earning's growth affect the exact placement. Are these the major factors that have allowed the increase in the ratio over the past few years or are there other factors? Do Bob's "5 causes of a bear market" encompass all the factors that might cause a decrease? If we believe we might be in for an annual equity ROI of 8.5%, when does it make sense to become less than fully invested? This wouldn't be because we believe a crash is imminent but rather that 8.5% is not much greater than a GNMA or municipal whose risk is much lower. Or should we rotate more into small caps whose PE is lower.