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

To: stock bull who wrote (7295)	8/30/1998 4:22:00 PM
From: paul richards	Respond to of 42834

This market suffered from Hype or another way... "It was the best of times, it was the worst of times,." a popular and fitting line which could be used the describe the US stock market bull run over the last several years. Analysts have reasoned this roaring era as byproducts of the "new paradigm investing" and /or the affects of the "goldilock's economy". Few decried the hype and its effect of the unbridled wealth of the rising market. Fewer yet heeded, the fedspeak warnings in the 'exuberance' speech or of the foreshadowing global turmoil, in his interest rate address. Over the next several months, we will witness that it was simply hype, or "Hide Your Problems Economics" at its best. Hype is dangerous and unacknowledged. It intwined the analyst's prerequisite of corporate profitability with investors' appetite for higher share prices. It manifested itself in unprincipled government accounting to the balance gov't spending, all the way to the off balance sheet accounting of management compensation by options. It was the best of times, it was the worst of times.