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At 09:44 AM 4/8/98 PDT, Harold Gibbs wrote:
>
>I think it is a classic case of supply and demand. Money is moving into
>the market faster than the organic growth of the actual market company
>assets. Therefore demand > supply and the result must be higher prices.
> This money flow is being driven by the baby boomers retirement planning
>and just will not go away, barring some massive loss in economic
>confidence. My bet is that the bull market will go on for another five
>years at least. However we will see at least one major correction per
>year (as we did late last year) as people get nervous at all these new
>highs.
>Harold
>
>
Harold,
You stole my words. (better than I said it).
These savings have to find a better place to work, or they
will continue to go into stocks. When the masses decide the
Blue Chips are too dear, they will run the small-caps.
When a number of factors throw up the red flags, we get to
the top:
A combination of dramatic increases of bankruptcies, rises in
private debt, wage inflation, odd lot buying, Rukeyser's eleves
going negative, M2 money supply lagging, etc, etc. may combine
to give us the ultimate overbought signal.
Only a few of these look bad right now.
PeteNa
petena9090@xxxxxxxxxxxxxx
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