Alan Brochstein

Large Caps Could Lead the Market Much Higher

Hey, it's blatant manipulation, but here's a fact. If the economy goes south again, many of the companies that we thought might disappear due to poor liquidity (too much debt due too soon) won't struggle as much. Many have reset their capital structure. Now this doesn't mean that their prices won't drift slowly towards zero as the economy remains Japan-like for years to come, if that is the case, but there won't likely be the panic such as we experienced in the earlier part of this year.


On Oct 18 09:39 AM j-dub wrote:

> Appreciate the timely reply.
> See, this is the effect that the gunning of the stock market is trying
> to produce. Money managers wondering if they are mising an economic
> expansion (perpetually, always a quarter or two away)about to occur
> (even if the math says it can not). Thus producing the snowball effect
> of moving the markets even higher .
>
> I wish you luck and, yes, large caps with world-wide exposure certtainly
> might producce the highest returns in the next five years.