tag:blogger.com,1999:blog-6817619364740744184.post7365308657935231882..comments2023-11-03T06:35:39.388-07:00Comments on Debt Delusion: Debt-Deflation Still In PlayStuarthttp://www.blogger.com/profile/14931057235834026901noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6817619364740744184.post-5654154971275364292009-10-22T05:39:37.503-07:002009-10-22T05:39:37.503-07:00Until there’s a clear technical sign, I think opti...Until there’s a clear technical sign, I think option 2) is the most likely. As Hussman says, it’s useful to think about price moves as difference of opinion between value buyers (buy low, sell high) and technicians (sell on weakness, buy on strength). I agree this recent rally is not built on strong fundamentals, but until the technicians see a clear sign of the Dow topping out (yesterday’s capitulation could well be that sign, but hard to call while Dow remains in its uptrend), then equities probably still look like an attractive short-term place to park all the cheap money that’s flying around. True, fundamental investors are unlikely to buy now, but then they probably jumped out when they realised this was a monetary and fiscal policy-fuelled rally. In other words, as it remains a traders’ (rather than investors’) rally, it’s the technicals that’ll lead the way.Anonymoushttps://www.blogger.com/profile/04442609985856699941noreply@blogger.com