To: Jerry Olson who wrote (13725 ) 11/7/1997 10:46:00 PM From: Cynic 2005 Read Replies (2) | Respond to
OJ, I didn't even trade a single share by 1987. Obviously you are a veteran trader than I am. But, that doesn't disqualify me from disagreeing with your opinion, does it? Perhaps the worst lesson 1987 crash ever taught people is to buy dips, any dips. Sure, in a secular bull trend dips are a correcting mechanism, not a bear trend by itself. But, the markets did not start at the advent of this bull leg in 1982. If you wish to follow history before 1987, there were protracted periods of time in which stocks were universally hated and for a good reason. Each time, you got there soon after an euphoric enthusiasm for stocks, much like the one you have displayed in your note. In 1987 the eventual problem for the big drop was supply and demand (for stocks), magnified by portfolio hedging. 10 years later, now that many more people have exposure to stocks, the same supply and demand equation is heavily weighted towards, supply. [I will post numbers later.] You turn-around and yell SELL, the echo will be "Sell to whom?"
