To: Terry Rose who wrote (16856 ) 8/29/1998 5:37:00 AM From: Gabriela Neri Read Replies (4) | Respond to
I think that is correct, but I suspect that shortly, these really angry bulls will launch a rally of all rally's. I know that Loius Rukeyser is telling all his lemmings that a viscous rally is forthcoming next week. Of course, he is the same guy who will tell thousands of investors in a conference room in Las Vegas how the market was going to the moon and how American hegemony was on track and A-Okay. The problem with these bulls like him and Hairy Abbey Cohen is that they really are to the point where they believe their own Bulldodo and also think it is their god given right to have a continuing bull. It has become religion for them. The mantra one hears from the bulls currently is that Russia doesnt matter. All bear markets start while the fundamentals are good because the market is a discounting mechanism and is looking beyond the current situation. We may have a rally and it may be a good one, but I would be willing to bet that we have about as much chance of taking out the highs on the Dow Jones as we do from seeing live in real skin the one and original Elvis Presely. My money is with Bob Farrell and Barton Biggs, who see the situation as it is. And that is that we have entered, for the moment, a cyclical bear market which will not end until at least the end of October. And, we will then see if the bear is really cyclical or secular. I think that will depend on events which transpire between now and then. But I must admit, I am really enjoying being witness to the sweating and squirming of the bulls as they sense that their racket may be over and try to hold on the ghost. Their screams and yells of: Russia doesnt matter; and Asia doesnt matter; and Japan doesnt matter;-----Their screams dont matter. So, they can have this little ole rally but to me its clear that this is a sell the strength bear market we have entered. The tide has completely turned around from buy the dips to sell the rally's. Those who dont switch to this mindset will lose more and more money. When Stanley Druckenmiller gets on CNBC and tells the investing public(a pubic he feeds off of like killer whales do sea lions) that the market is undervalued, you know its all over. He wants to get the market up so he can get his positions off to the stupid money who believe that crap. After taking a two billion dollar hit, he is no mood to speculate too much. Its wealth preservation which will be key.
