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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Andeveron who wrote (20024)	9/5/1998 11:14:00 PM
From: James Strauss	Respond to of 50167

Jim Dines Calls It A BEAR... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~"The 'Father of All Bear Markets' has begun," says James Dines, editor of the Dines Letter, who has just closed the books on 'The Mother of All Bull Markets.' "The fact that the Dow kept plunging last week despite its deep oversold condition and that it knifed through the 8,000 area without having paused, is even more ominous than Japanese markets having collapsed to new lows," he said. The Belvedere, Calif.-based investment advisor warned that there's more trouble on the horizon, with Latin America possibly the site of the next crash after the bloodbaths in Asia and Russia. Dines said the market's slide, capped by Monday's fall of 513 points -- the second-largest in the Dow's history -- was reminiscent of the 1973-74 market "smash" when stocks fell nearly 47 percent. During the Grand-Daddy of all bear markets, the Dow slid from a Jan. '73 high of 1,067 points to 570 by Dec. '74 on fears of a weakening economy and the oil-price shock from the Arab oil embargo. Today's market, having zoomed without a correction since 1996, faces an equally frightening future. There is concern that the economic sickness in Asia, Japan and Russia could spread to the United States, via America's big trading partners -- Canada and Latin America. In the last six weeks, the Dow has fallen from a record high on July 17 of 9,337.97 to a low of 7,539.07 Monday -- a fall of nearly 20 percent. Despite the drop, investors are not out of the woods yet. "We have the historically negative September-Oct. period straight ahead," Dines said. The experts say Wall Street should brace for more rough times because the list of victims of the global economic problems is growing. This week, the largest U.S. banks and brokerage houses confessed that their earnings were hurt. Jim