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


To: MrGreenJeans who wrote (7608)9/4/1998 1:07:00 PM
From: Alan Bell  Read Replies (3) | Respond to of 42834
 
MrGreenJeans,

Your analysis is welcome. The idea that uncertainty causes investors to take a cautious approach and move money to the sidelines makes a lot of sense. The upside for investors who put money in now, if correct, seems substantial.

But the other concern seems to be the possibility of a recession in the US. We have seen a number of big investors, and not just the usual bears, claim that we are entering a recession. The claim also is that by the time that the Fed recognizes this, it will be too late to lower rates (or alternatively because long bond rates are so low, lowering the fed rate won't stimulate much.)

Last weekend, Bob dismissed a recession as a possibility. But the argument wasn't detailed enough to be totally convincing. Why do you believe these recession fears aren't justified?

-- Alan