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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (9866)	12/1/1997 2:18:00 PM
From: tekgk	Read Replies (1) \| Respond to of 18056

One of my favorite letters - The Skeptical Investor: chebucto.ns.ca He's not quite done but the sneek preview is worth it.

To: Cynic 2005 who wrote (9866)	12/1/1997 2:27:00 PM
From: vegetarian	Respond to of 18056

>>U.S. to face earnings growth crunch - funds Good article. Looks like we are in a great period where: -the economic indicators on the US side have shown upside momentum and would have forced Fed to increase rates if it weren't for the Asian crisis which would be considered bad for the stock market normally -the Asian crisis has potential of severly affecting revenues for US companies directly and indirectly via Asian effect on European companies and if we were not in such a raging bull market this event would have been perceived as negative by itself So what does the Wall street choose to do: On the one hand it says the Asian problem can be ignored because not much is affected in US and on the other hand projects that the same effect will offset the inflationary pressures in the USA so the Goldilocks scenario should continue so we get a buy buy buy rally. They have managed to combine two events that would, if considered individually, be negative for equities into a positive spin. Ben Graham on Wall Street absurdities on merger and splits mania had said, paraphrased, "two plus two becomes five and this five is split as three and three later", I guess he forgot to add how two negatives combine on the wall street to make a positive. Would be interesting to see how long this irrational bull will drive the markets, somehow, I don't see it going much beyond February timeframe and will hold my shorts/puts whatever. I was amazed this thanksgiving weekend at a party at how much confidence people show on "buy-the-dips" strategy and many told me to close my eyes and do it next time the market falls 500 points, outta mean something.