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

To: bearshark who wrote (7785)	10/27/1997 4:26:00 PM
From: tekgk	Read Replies (2) \| Respond to of 94695

Bearshark, You are probably a student of history and will probably appreciate this: For twelve months the growth in nominal gross domestic product has been 6.2 percent and, thanks to a Consumer Price Index that averaged exactly 0.0 percent, the real gross domestic product also grew 6.2 percent. Industrial output soared, up a whopping 11.5 percent during the last four quarters, yet did not set off inflation. With unemployment down to 3.8 percent, the prime rate steady at a relatively modest 5.8 percent (and is not likely to rise as long as inflation stays so low). The budget deficit is vanishing on its own and there may even be a surplus. You may think you've heard all those tantalizing numbers again and again in the last few weeks, but they're not what you think. Those statistics are from September, 1929, when the stock market was on the verge of a devastating crash. The subsequent bear market took 25 years to recover. The markets often disconnect from the economy. I am not saying that they will this time but there are lots of historical precedents. Years from now the talking heads will be looking at financial indicators instead of economic ones.