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Strategies & Market Trends : Why the markets will continue higher... -- Ignore unavailable to you. Want to Upgrade?

To: Kapusta Kid who wrote (590)	1/27/1998 9:45:00 AM
From: yard_man	Respond to of 745

Certainly seems like there is a lot of inertia with the big caps. I agree that they will have to take a significant hit before there is any major rotation.

To: Kapusta Kid who wrote (590)	1/27/1998 10:15:00 AM
From: current trend	Respond to of 745

There is a thought circulating that we may be entering a period of time the polar opposite of the stelth bear market of 1994. Back then the big caps with global exposure corrected less than 10% while the small caps got hammered. Thus the major indexes held up fairly well disguising the weakness of the overall market. This time the large caps with signigicant global reach will be hurt by the dollar strength as well as the collapse of the foreign markets such as Asia. On the other hand, small caps on the Nasdaq And Russell 2000, might be shielded by their domestic orientation, and thus benefit by the low inflation and interest rate envirinment here in the US. Therefore, we may see again a two tier market, with the indexes, however, showing by comparison to 1994 more weakness than is really present. Only a thought-- CT