Friday, June 15, 2007

Third Phase Bull Market

In my opinion, the third phase of the great bull market is now in force.

This is an international bull market, and it's fed by a world overflowing with liquidity, backed by interest rates that are abnormally low. The bull market has moved into "over-drive" with the entrance of China, India, and with one-third of the world roaring into the capitalist system.

Speculative fever is in the air, and most recently we hear about a new source of leverage and excitement. Enter the billion-dollar private equity fund. Now every corporation is a takeover target, regardless of size. This new game dwarfs anything ever seen before. It's global finance on steroids.

The hot names, the new names, are appearing on magazine covers -- Schwarzman, Blankfein, Peterson, Cohen, Kravis, Mack, Pickens. Forget about yesterday's millionaires, today we read about the new breed -- the billionaires. A billion dollars, in case you're not aware of it, is one thousand times a million dollars.

This is a twenty-first century bull market, and the score is no longer kept in mere millions of dollars.

I told you that stock indices around the world are heading skyward in the greatest bull market third phase in history.

Here, I picked out four of my 17 foreign sectors at random. They all look roughly the same. We see Hong Kong, the Netherlands, Spain and Mexico, each with its 200-day moving average. And the direction is due north. I mean, seriously, have you ever seen anything like this? I haven't, and I've been watching markets on a daily basis for half a century.

From: DowTheoryLetter


Anonymous Anonymous said...

dude your blog has become almost worthless. far too biased to be credible. try to be more objective or nobody will come here any more (its far too crowded :-)

12:23 PM  
Blogger Looney Moon Cartoons said...

Yeah, and its not funny either

9:01 PM  

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