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You suggest a self-balancing system in which there is always a safety
value which will let some excess out of one sector of the market while
others move ahead. I see a system in which the aggregate pressure level
continues to increase even though one sector or another blows off. I see
a very strong and robust business economy which will continue to improve
in efficiency and productivity juxtaposed against a corporate and
consumer credit/spending/speculating binge which only continues to grow.
The LTC debacle suggests that the creation/use of derivative instruments
and leverage will continue to expose new chinks in the art of hedging as
conceived by the world's finest financial minds.
Either some significant excesses will be removed from the system or it
will eventually explode ... I have no idea when. In-as-much as the
equity markets appear poised to move higher after a modest correction,
it does not appear to be in the immediate future.
Earl
----- Original Message -----
From: "Gitanshu Buch" <OnWingsOfEagles@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, January 11, 2000 7:37 PM
Subject: [RT] RE: Re: Will Boomers Panic Out Of Equities..?
> Seems to me these sharp narrow "small time" 10%-20% "corrections"
would get
> more prevalent, as opposed to any sustained bear market - since the
system
> gets too expensive for anything more to happen, and the world leans on
the
> wrong side too much, and we over-correct in the opposite direction,
swiftly.
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