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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Hank Stamper who wrote (1724)	10/21/1998 10:30:00 AM
From: Justa Werkenstiff	Read Replies (2) \| Respond to of 15132

David: "What do you mean by a "stealth recession?" Deflationary pressure and falling employment?" I mean that the equity market has priced in a recessions which will not come to to pass with an aggressive Fed. kicking everyone's butt to provide liquidity to the system. LTC's loss is your gain. Re: "My previous question was 'what makes the current period different from a market top? which favours large caps." Liquidity is a driving force. Look closely. IPOs are going back on the shelf. A company can't get high yield financing as a business without paying loan shark rates. The Fed. sees this and will carrot and stick people to provide that liquidity. It will flow to the small caps. I have never seen such a favorable climate for small caps. The biggest risk, in my opinion, is that they perform in line with the market. I can live with that risk.