The 1980's began with political
commentary, called "supply side economics." In short, this meant that
money was going to be transferred back to the value producers. This was
highlighted with huge tax cuts. As the decade progressed a new wave of entrepreneurialism
entered into the economy. Fortune 500 companies were getting bigger and lazier.
Talented individuals opted out of cozy corporate jobs and built their own high
energy businesses.
This underlying tone set off the first leg
of unprecedented stock market growth. Oil prices and interest rates began
collapsing. The Japanese were importing vastly superior automobiles at
competitive prices. Finally, Detroit automakers were facing some real
competition since they and their hired politicians scuttled the Tucker Torpedo
from entering the market with his vastly superior products in the late 1940's.
The stock market collapsed in October
1987, but that was a mere technical correction. Investor emotion
"anticipated" bad economic news, which did not materialize to the
extent of the collapse. From a long term perspective the stock market quickly
recovered.
The LT Indicant did not detect the
collapse of 1987 and recognized that particular collapse as a correction. There
is no doubt this is bothersome to you. The Indicant maintains three different
perspectives and trading systems. They are:
1. Long-term Indicant.
2.
Mid-term Indicant.
3. Short-term Indicant.
4.
Quick-term Indicant.
The Mid-term, Short-term,
and Quick-term Indicant's signaled bear prior to the market collapse of 1987. However, if
you had a long term perspective in 1987 and was a subscriber to The Indicant
Stock Market Report, you would have known the debacle of 1987 was a mere
correction. However, if you were nearing retirement or had other short term
perspectives, you would have been more focused on the shorter term models and
would have avoided the crash of 1987.
This leg of the bull market from August
1982 through September 1990 yielded a growth rate of 172%.
