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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (68959)	10/20/2011 3:36:43 AM
From: John Pitera	2 Recommendations Read Replies (2) \| Respond to of 207163

what the heck was the matter with Mid August of 1982- into mid August of 1987? Those where some nice days. there were opportunities to snort, snort, snort......... and for those who had to asset allocate you had stocks kicking ass and taking names with big dividends and you had treasuries and bonds that were in early days giving you a 16 or 14% yield with a 40 or 50% capital gain on top of that for govy bonds........... those where heady days. Triple AAA rated........... anyone who talked to people who had asset allocations where they wanted they were mandated to have some in fixed income...... well making 30 % a year in US Gov. backed obligations, that was a golden age....... for wealthy people who where not going to be totally asset allocated in stocks....... That was the golden age my friend. Yes 1999 going into 2000 had tech stocks etc that were briefly 10 baggers but the mania brought all the valuations down hard if you could not leave in March or the secondary rally into Late August. Peter Eliades has pointed out that the top 10 stocks of the secondary speculative mania of 1968 all went up at least 10 times in that single year.......and every one of them was out of business .....bankrupt by 1972. and so it goes round and round. we've played the whole cycle in the Market Lab and we're actually getting better. Because these days it's John Mauldlin, currency defaults and soverign debt defaults that rule the roost. That's going to require a different skill set to maneuver through massive rounds of inflation, deflation and govt's that will wait until the last minute to show you their "hole" card. John