Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

The drain of the high price of crude is really not that severe, Crude cost have half the impact they had in the 70'-80' (energy was 15% of GDP, now about 7.5%, if memory serves). But yes, this could serve as a drain on the economy, but not a crash in the market (mind you, the crash of 87 was not followed by an economic slowdown. That drain is probably going to contribute (amongst other things) to a consumer led recession later this year or early next year, the next two quarter are still going to see pretty good growth, however. I would agree that last week action, while a good prep for a strong rebound, is a shot above the bough of the market, thu my suggestion that after this run we have a date with 1750 or so on the Naz, but not a crash to that level.