Choosing a CTA 6. The Investment Game Plan 8 . As readers of our Special Reports know, we were cautiously bullish on the stock market in 1999 and turned bearish near the market's peak in April 2000. Since then, our Special Reports have accurately warned of an overvalued market that would continue to erode. While the economy was still booming in the fourth quarter of 2000, we predicted that deterioration would become widespread.
Booms lead to busts.
Booms not only precede busts, they also cause them. The bigger the boom, the bigger the bust-and longer the recovery period. Let's not forget the speculative boom that lead to our current bear market was the biggest in history. The current bear market has done more financial damage than any of these markets. The effects of these cuts in Nortel and businesses across America are now beginning to seep into the broader economy and, we predict, will have a trickle down impact on other businesses, perpetuating the economic deterioration now underway.