Max B. Sawicky wrote:
>I have subbed you to my new list, LongWave2000,
>where we will discuss the reversion of the market
>indices to their pre-existing long run growth
>trends, notwithstanding the minor hiccups of the
>past ten days.
Hmm, well last I checked, which was year-end 1999, the S&P 500 was at
2.9 times its long-term trend price (long-term defined as since
1871). So just going back to the trendline would take the index down
by 2/3, to a Dow-equivalent of 3735. And, as any student of Robert
Shiller knows, trend overshoots on the high end are usually followed
by trend overshoots on the low end, Dow 2000 isn't an unlikely
target. That's why you're calling it LongWave2000, right?
Doug
