Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: thebeach who wrote (30744)	10/8/1998 2:24:00 AM
From: Moominoid	Read Replies (1) \| Respond to of 94695

I was thinking about a crash at the time. I didn't have any money - I was an undergrad (economics) in college then. I suggested some people to reduce their exposure to the market. But as you were saying they didn't pay much attention. David

To: thebeach who wrote (30744)	10/8/1998 4:48:00 AM
From: Philipp	Read Replies (1) \| Respond to of 94695

Hi Beach: Just before the crash not one person I knew was even thinking of a crash,they were basking in the sunshine of making lots of money. Lots of people I knew were thinking of a crash in summer 1987 and went 100 % cash (I did). But the media including the internet give crash talk much more prominence these days. Moreover, the situation today cannot really be compared to 1987. The situation is far gloomier. The stock market (U.S., Europe has already corrected 2/3) is far more overvalued, and we are in the middle of a world economic crisis with the prospect of a world recession (the world economic climate was much more benign in 1987). The situation is probably much more similar to 1929. Regards, Phil

To: thebeach who wrote (30744)	10/15/1998 7:15:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 94695

Were you watching Wall Street Week in 1987? Marty Zweig said, "There is going to be a crash" within a week or two of the big drop. As for me, I was totally out of the market, and was trying unsuccessfully to persuade a bank trust department to take family money out of stocks. After the crash we got a letter from the bank saying that something worse had happened in 1914. What happened then was that trading was suspended and when it resumed a new Dow Jones average was in place and the market was actually higher though the index had been changed. You are not correct, at least as regard the Dow, that there has yet been a decline equal to 1987. Perhaps the Ruseell 2000 is down that much--as much percentage as the Dow in 1987. The Fosback mutual fund report just showed Prudent Bear, the short fund, up over 60% in the last three months. A lot of former bulls will be on the short side of the market if the Dow gets below 4,000.