I would have a tendency to lean toward the market of the 70's. Cyclically
were are in a similar scenario. Based on the economic conditions and the
inflationary cycle that we are in I would not be surprised that we will
experience a 15% or correction over the coming months.
The fed says no inflation that is the biggest bull crap I have heard. My
business is certainly feeling it. The worst part is that it is difficult to
raise prices, unless I want to reduce sales. We are in a double edge sword
cycle. Steel prices, etc., are going up but, autoparts and goods for the
automotive industry have to stay down margins are eroding vehicle production has
to slow down otherwise there will be too much inventory etc.. There is simply
too much over capacity in certain sectors and China is one of the catalysts for
some of our economic problems.
I would bail on bonds etc.