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

To: donald sew who wrote (14889)	5/25/1999 4:05:00 PM
From: RealMuLan	Read Replies (1) \| Respond to of 99985

If those politicians decide to put billions of dollars in the stock market, do you still think the bear market will come?

To: donald sew who wrote (14889)	5/25/1999 4:18:00 PM
From: Robert Rose	Read Replies (2) \| Respond to of 99985

<As I have stated many times before I am expecting the S&P to trade back in the 15-20 P/E range within 5 years, and I do not when the exact top will occur. > I understand that is the historical range, but isn't this the 'new economy?' I hate to use an overhacked phrase, but the internet does seem to me to be transforming our economy in a fundamental way that only a few other technologies have yet to do in human history. On that basis, an historic pe range may not be very relevant. Of course, I know we have all debated this point ad nauseum. Nevertheless, I remain a bull following these summer doldrums (which given this week is a pretty kind term LOL). It is times like these that you traders do much better than b&h'ers like me. Congrats.

To: donald sew who wrote (14889)	5/25/1999 6:06:00 PM
From: Daniel Joo	Read Replies (1) \| Respond to of 99985

I suspect that we will start seeing significant selling due to margin calls after a couple of days. With new money flow decreasing, it may get uglier sooner than later unless the bigger players decide to step in (I don't see that at these valuations.) With strong consumer spending resulting in a negative savings rate and the Fed tightening, I don't see significant new money flowing into the market for a while. If the CPI number in June comes in close to the last one, the Fed will raise rates even at the risk of a market correction. In addition, Kosovo and China could take a turn for the worse.