For Jake Bernstein, the millennium is bad news. The stock market will crash, panic will ensue, and today's paper millionaires will become tomorrow's paupers. In Beat the Millennium Crash
, Bernstein, a noted futures trader whose previous books include The Compleat Day Trader
and How the Futures Markets Work
, sees a confluence of trends and patterns that will culminate in a dramatic stock market panic that could be triggered by problems associated with the Y2K bug.
At the heart of Bernstein's argument is the idea that interest rates determine the direction of the stock market and overall economic activity. He believes rates are approaching a 54-year bottom, and that "there is no reason to believe that the patterns in interest rates have changed or that the market has ceased to be cyclical." Rising rates will cripple the current bull market, and investments that are out of favor today, such as precious metals, will be one way to profit in this gloomy environment. While Bernstein doesn't think that we'll all turn into pumpkins at midnight on New Year's Eve, he does see the end to the current stock market party happening by 2004. Bernstein particularly likes gold as a hedge to this bearish scenario as well as a healthy amount of cash. No one likes a party pooper or a contrarian, but his advice just might profit those who listen. --Harry C. Edwards
From Library Journal
Bernstein is the author of more than 20 books, including The New Prosperity. Though his formal education is in clinical psychology and sociology, he works in the stocks and commodities markets. His forte is in uncovering patterns that have financial implications, particularly with respect to millennium problems such as Y2K. He offers some guidance in detecting what market sectors will have problems, where there are possible growth areas, and some basic strategies to deal with Y2K problems in bank accounts. Interesting pointers are presented for investing in metals (gold, platinum, palladium) as a component of a strategy. Overall, the book does a credible job of investor education, but the question is whether it has a reasonable shelf life. Regrettably, the answer is probably no.ASteven Silkunas, Southeastern Pennsylvania Transportation Authority, Philadelphia
Copyright 1999 Reed Business Information, Inc.