Wednesday, March 05, 2003

WAR AND THE MARKETS

The threat of war has very little to do with the overall movement of the markets. Please take a look at some of the fundamentals in this market, which stink, such as high p/e's, lowered earnings expectations, continued obfuscation of the truth in public documents, the reality of pension plan underfunding, high unemployment, a sinking dollar, etc. And add to your thinking that this low volume decline is happening when bonds are not an attractive alternative.


The smart money is OUT of this market or SHORT. The war has little to do with it and the cost of $100 billion - while probably grossly overinflated - is not much to whine about. In fact, government defecits and lowered tax rates are *supposed* to be elements of stimulus.


Pay attention! you liberals in the back row. There's going to be a test in 2004.

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