BearHugs Posted March 15, 2004 Report Share Posted March 15, 2004 The following chart reveals the stunning increase in corporate profits margins despite very low industrial capacity utilization rates. It?s no wonder that job creation is very disappointing. Corporate managements, under intense pressure from anal cysts and shareholders to grow profits at double-digit rates, cannot afford to hire workers, period. In fact, poor employment data emanates from the crux of the bull case: still artificially low interest/inflation rates and very high corporate profitability.? Monetary policy is marching investors off a plank. Faced with no income from bank deposits and money market funds, individual investors are throwing money into the stock market again. But the market is swallowing their money without going up much. This is probably another case of imminent capital destruction. The seller/buyer ratio for the Financials was a robust 9.7 to 1 and for the Brokers was a huge 16.8 to 1. The shares sold/bought ratios were respectively 70.4-1 and 60.1-1. Despite booming business, insiders cannot get rid of their own shares quickly enough. But In Wonderland, nothing computes.? The Investment Company Institute reported January fund flows in late February. Equity fund flows were a surprisingly large $43.8 billion. When we put this figure into our database and look at monthly flows, flows as a percentage of assets and flows compared to household savings, the comparisons are all reminiscent of early 2000. It is also worth noting that January equity fund flows coordinate with January?s extreme AAII bullish sentiment readings. (January 2004?s sentiment readings were the highest since January 2000.) In short, January 2004?s sentiment and flow figures are much like January 2000?s statistics. Need we say more?? Notable Quotables Link to comment Share on other sites More sharing options...
The End Posted May 19, 2004 Author Report Share Posted May 19, 2004 If a bearish wave started this week than this might be the outcome. How's this? (if the trend has changed to down) Down to 1096 for wave one up to 1137 for wave two Down to 1029 for wave three up to 1054 for wave four Down to 987 for wave five. Time frame 2-4 months. I welcome comments. Positive or negative. This is still good and getting more attention it seems. Link to comment Share on other sites More sharing options...
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