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

To: Trebor who wrote (1897)	10/27/1997 6:31:00 PM
From: dougjn	Respond to of 42834

Thanks. Makes sense. Regards, Doug

To: Trebor who wrote (1897)	10/27/1997 6:55:00 PM
From: Dogbert	Respond to of 42834

"But he's saying don't jump the gun on buying. Wait until the re-testing of the low." What about the loyal multitudes who are fully invested? --- Seriously, I hope he's right. Because if a snap back doesn't happen within a month or so I think this will spill over to consumer behavior. Here in the Bay Area, how many will continue to blind bid "$20K over highest other offer received" for houses if they feel the future is less than brilliant? Or bid over invoice for new MBZ and BMW's and still have to be on a waiting list for months to get one? Our red hot economy has largely been driven by the stock market: "I'm a hot engineer and the job market is so tight I know I can just pick up the phone and have a new job tomorrow any time I want one. I get stock options which multiply in value daily. I make more from them than my salary, a relatively insignificant part of my total compensation package. Plus, my day trading has been wildly successful for a couple of years. The future's so bright, I need to upgrade my lifestyle yet again." Image what happens to this guy's consumption pattern when any of the pillars of his exuberance falls. Like a manic-depressive, his behavior swings to the opposite extreme. He sobers up, suddenly sees his recent behavior as extreme, then overcompensates for it by going too far in the opposite direction.