Dow 36,000

[joanna bujes]

At 03:14 PM 06/05/2002 -0400, Doug wrote:
>The textbook sentiment topping cycle is euphoria at the peak,
>everyone thinking the sky's the limit ($100 oil! $5,000 gold! Dow
>36,000!). Then a decline sets in, but it's taken as a buying
>opportunity, which it turns out not to be. Prices continue to fall -
>then, about the midpoint of the downdraft (what Prechter calls the
>"point of recognition") everyone says, oh wow, X is in a downtrend.
>It continues to fall, and then everyone thinks X is dead, never to
>rise again. That's the bottom. Crudely put, of course. For the $ to
>be getting this much negative press seems premature. Not that things
>always work according to the model.

I've been meaning to tell you this for a long time, but the LBO headline: 
"Dow 23,000? No. Dow 543,674" ...or something like that, was the funniest 
headline I've read in my entire life. It cracks me up every time I think 
about it.

By the by, add this to your list of lugubrious facts: foreign investment in 
U.S. is down 60%. Charles Januzzi opines that the U.S. is starting down 
that slippery slope where Japan was ten years ago.

Joanna