Brokers always find a reason why you should buy

Read Below;

Good morning,

>
> As the US is now into the second worst bear market this century it is
> important to remind ourselves that things do turn around at some stage. We
> are seeing some signs of strength in the U.S economy with persistant
> strength domestically. Following are some points to remember when looking
> at this market-
>
> Strategically 3 out of 4 top down drivers are pointing in the right
> direction.
>
> Valuation models are in attractive territory - the current valuation
> position has not been seen since Sept 01,the depths of the Asian crisis,
> the early 1990's and the early 1980's.
> Liquidity remains supportive - the net liquidity position could over the
> next 12 months be stronger than seen in the last few years, providing a
> strong signal of liquidity driven support for equities.
> Sentiment Measures - Our Asia / Pacific strategy team's "Risk - Love"
> indicator of investor sentiment comprised of a combination of market
> sentiment indicators is firmly in panic territory.Historically this has
> provided a solid buy signal for Australian equities on a 12 month basis.
>
> Earnings potentially the near term weak link. Our analysis suggests the
> macro economic backdrop may not be sufficiently strong enough to match
> earnings estimations in the market for the June 03 financial year.
>
>
> Investment Cycle Theory
> There are analyst whom purely concerntrate on following cycles to assist
> in making financial decisions ( each to their own ), see the following
> comments on www.dowtheoryletters.com.
>
> The 20 year cycle may hit its low around October of this year . The last
> 20 year cycle lows were struck in 1942,1962,1982 and ?????????
> The 20 week cycle is also showing signs of bottoming.
> The Presedential Cycle , a four year cycle. This cycle hits a low
> somewhere in the two years prior to the actual presidenatial election.
> this cycle has been seen to have worked during every pre presidential
> election except during the bear market period of 1930-32.
> The obvious 'good six months' is in front of us whilst the 'bad six
> months' is behind us . Investing November through to May has in the past
> proven to be more profitable than the prior half of the investment year.
>
> Finally the US market is on its way to a third consecutive down year - it
> is stated on the Dow Theory Letters web site that the US market has never
> been down four years in a row.
>