Can a market rise too fast?

[xtraderx]

On the face of it, this question would appear to be absurd. Who could possibly object to making more money rather than less?

But a number of the editors of the investment newsletters I follow nevertheless are worried about the pace of the market's recent advance. They argue that, historically, the market has tended to fall more sharply whenever the pace of its previous ascent was too steep - and is therefore dangerously unsustainable.


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[unpredictable]

Yes I do agree with the statement that if a market goes higher or lower too

fast it is bound to come down or go up, that is called correction ..... this has

been evident in many markets , especially in Developing markets like India .

Even otherwise gold has been seen to be going through this faze every now

and then. It is therefore, pretty risky to invest in such markets unless you

are absolutely sure or if you have spare or extra money which you can

afford to loose. I say play safe otherwise .

[xtraderx]

Speaking of slowdown... you may wanna take a look at this...

The U.S. economy should experience slower growth than originally anticipated for the remainder of the year and in 2007, the White House said Tuesday.

The President's Council of Economic Advisers projected that economic growth would be slower than forecasted last June, with real gross domestic product growing 3.1% for all of 2006 and 2.9% in 2007 before rebounding to a 3.1% gain in 2008.
The forecast said that the revisions reflect a weakening in the housing sector, but that other areas of the economy remain strong.

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