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

To: Boca_PETE who wrote (4728)	4/25/1998 10:34:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 42834

pete, i'm trying to figure out the economic outlook and i'm having difficulty. financial assets are inflating beyond belief. there was a time not too long ago when pes and growth rate should pretty much match. now a pe of 40+ and growth rates of 10-15% are not unusual at all. real estate is also undergoing massive inflation. where i live real estate is up 10%-15% in three months and inventories are still low. this is the worst time to buy since '87. however, everything else seems to be deflating - or at least staying the same. i'm not sure how this will end up - inflation, deflation or more of the same, but 2 out of 3 choices look very, very nasty. appreciate everyone's input. why are homes and financial assets going up 10-15% in a few months, yet nobody else has any pricing power? can this last?

To: Boca_PETE who wrote (4728)	4/26/1998 3:49:00 AM
From: marc ultra	Read Replies (2) \| Respond to of 42834

I don't see the outlook so sanguine. The wild speculation we've seen properly called by Bob reminiscent of tulipmania has till now been the one ingredient whose absence was arguing against a top and now we see it in spades. Asia has not lived up to its ability to significantly slow the economy and now we have articles and Fed governors openly talking about the need for preemptive strikes, something off the radar screen since the Asia meltdown. Record high valuations and dangerously high bullish sentiment prevail now. Bob has also mentioned cash in mutual funds is near record lows. It is clear that these factors have made the market relatively unattractive compared to any time recently. As has been noted Bob has made a shift in degree of bullishness. Prior to this weekend when people discussed what to do with certain large positions Bob had a tendency to say he might let it ride for now since he's bullish on the market. Saturday instead he was suggesting readjusting equity positions down if asset allocation was out of whack due to bull market appreciation