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Author: miro26 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 465322  
Subject: Re: Bailout & Congressional Hearings Date: 10/5/2008 2:04 PM
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<Didn't you hear the prediction that stocks would crash if they didn't do it?

I mean, we wouldn't want stocks to crash, so they had to do it, right?

it would be terrible if stocks crashed, after all. >

I continue to be amazed that the market holds so many enthralled eight years from the Naz collapse and into this current bear market. Something still feels unfinished in the wash out. Intermediate term there has been some very good opportunities to trade the most obvious one being the 2003-07 move as Russ pointed out. But even so some of the most important 'components' of our markets have shown very lackluster performance over the last 8 years.

I was examining GE's long-term chart last night and was struck by how GE has significantly lagged the indices over the last 5 years. After reaching its high water mark of $60/share on September 8, 2000, it went on to trough on Valentine's Day 2003 at 22.48 a 62% (Fibanacci number?) collapse. The 2003-07 bull market only took GE back to 41 a nearly 50% gain from the low at a time when the indices where (at least in nominal terms) rising and slightly surpassing their 2000 highs. As of Friday (October 3rd) GE broke below its 2002 low. GE has been losing momentum for a long time.

Many consider GE to be a barometer of the US economy and market. Is GE's bellwether status no longer valid? Is the conglomerate a broken model? Or has it been telling us something that fundamentally all was not well over the last 5 years?

Miro
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