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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (3893)	1/13/1999 2:48:00 PM
From: Bonnie Bear	Read Replies (4) \| Respond to of 99985

Paul...it's not just valuations...it's a casino.. did you notice that the utility index didn't flinch today? Electric utilities are 100-year cheap. REITs are selling substantially below the replacement cost of the buildings..and every month I smile at the increase in the 8% dividend. And microcaps are at 1974 valuations. No...the story here is about how a few big businesses misused the derivatives market to print "currency" legally to a scale so huge that it would bankrupt the U.S. Govt to do anything about it. The bubble in the nas and big cap stocks is fool money used to settle large contracts of forward leaps and futures on the S&P and tech index. In this kind of world, valuations have nothing to do with it. Anything not tied to the index is drained of its liquidity to pay the piper. I kinda think the bubble won't break until Goldman goes public and the criminals can get their hands on their money. Somebody is using the forward futures contracts to drive the price of metals down, as they did today in Europe...I've a clue that's where some of the money will go. And into everything that's beaten down. As Michael Burke says, buy what is real.