|
PureBytes Links
Trading Reference Links
|
Just a quick note about his visit to Minneapolis. In a nutshell he has
based his Dow 10,000 analysis upon low inflation and low interst rates.
He took the years 1962 to 1966 as the comparison years. Those years also
had low interest rates and low inflation. And the Dow went straight up.
Those were the years when valuations (PEs) expanded. He said that most
analysist, and Greenspan included, are trapped in the 70s and 80s when
the Dow was trapped in a trading range. He did say this bull was tired
and expected sometime next year there would be a bear market. i.e., a
well needed correction.
He also said that tha US is probable in the best position in a long time
in terms of being competetive. Japan's structure won't allow for firing
workers, France is digressing to socialism, and East & West Germany will
have problems putting there pieces together.
He said be selective in your companies, and make sure you take some off
the the table and put it someplace else.
If you ever get a chance to hear him speak, do so. It was very good. He
talked about the struggles of being in the lime light. Was not
comfortable with it.
Harley
|