potentially disorderly rebalancing

Lawrence lawrence at krubner.com
Sat Aug 25 18:12:14 PDT 2001



> Discussions with market participants during the International Capital
> Markets missions focused on concerns about a renewed sharp repricing
> in U.S. equity

The Dow Jones was just under 4000 7 and also 8 years ago. I've read that the Dow since 1880 has gone up about 6% a year. If that suggests something about what a "reasonable" price for equities would be, that would mean the Dow "should" be at about 6375 now. Of course, that assumes that the pre-bubble prices of 1994 reflected some kind or reality, and not the irrational pessimism of recession-troubled early 90s America.



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