| Ralph Acampora is Chief Technical Analyst with | | | | you can argue that every bear market is a |
| Prudential Securities, which in the estimate of most | | | | temporary correction in the longer-term rise of the |
| financial academics makes him today's equivalent to a | | | | market.) |
| soothsayer attempting to the future from the | | | | Mr. Acampora includes some basic information on |
| entrails of a sacrificed bull. | | | | technical analysis, but I found the historical |
| The main point of this book, published in 2000, is that | | | | background on the three previous mega-markets |
| the U.S. bull market which began in 1995 was the | | | | more interesting. If you want to learn technical |
| start of a long term "mega-market." There have | | | | analysis and how to read charts, you can buy many |
| been 3 previous mega-markets in U.S. financial history: | | | | books devoted to that subject. |
| 1877-1891, 1921-1929 and 1949-1966. | | | | Most writers today describe the late 1990s market |
| Interestingly, this technical analyst describes the | | | | as a "bubble" rather than a "mega-market," since that |
| reasons for these mega-market in "fundamentalist" | | | | term seems to convey some legitimacy to the hype |
| terms. They all occurred after a major war and they | | | | and over-inflated stock prices typical of that period. |
| were all driven by new technologies. | | | | However, I have no doubt that eventually that the |
| In June 1995, Mr. Acampora went on record as | | | | spread of computers and computer networks will |
| forecasting the Dow Jones Industrial Average would | | | | indeed help bring us greater prosperity. They have |
| read 7000 much sooner than anybody expected. He | | | | already changed businesses to an enormous degree, |
| went on to predict other Dow advances that came | | | | and that's going to continue. |
| true in the bull market. This book is his prediction that | | | | However, that future is still arriving, and did not |
| bull market would go on for at least 8 years. | | | | justify the overvaluations of high tech and dot com |
| I don't know how he calls it now. Obviously, the bull | | | | companies which did not even then have any |
| market crashed soon after or before the publication | | | | earnings. Sometimes, not even sales -- let along |
| of this book, though it's possible that the bear and | | | | profits. Also, when he wrote this book Acampora |
| sideways markets of 2001-2005 were simply a | | | | could not have been aware that soon there'd be |
| temporary correction. | | | | revelations of massive accounting fraud at many high |
| (Harry Dent also argues, based on baby | | | | profile companies. Information such as that cannot be |
| demographics not technical analysis, that the stock | | | | found in charts. |
| market will boom again through about 2009-2010 -- | | | | This book works mainly as an explanation of how |
| when baby boomer retirements will cause it to | | | | history, technology and people can come together to |
| REALLY crash. And if your time-scale is long enough, | | | | create periods of prosperity. |