Freddie Mac Roils Market

Whether merely moderate economic growth will prove sufficient to justify current valuations is subject to debate. Meanwhile, low capacity utilization and low capital expenditures are key reasons why Diane Garnick, chief U.S. portfolio strategist at Dresdner Kleinwort Wasserstein, maintains an "underweight and generally pessimistic view on U.S. equities," as she explained Monday. "Not enough of the underlying fundamental problems facing the U.S. have dissipated for us to be comfortable."

Brinker, however, "will not prejudge the market's full potential, but rather remain vigilant for signs of deterioration in the Marketimer stock market timing model," something he doesn't seem to have spied just yet.

Denouement

Those who are following his recent successes should be aware that Brinker, like all humans, is subject to error.

After making a well-timed "sell" call in early 2000, Brinker recommended that subscribers invest between 20% to 50% of cash reserves in the Nasdaq 100 Unit Trust(QQQ Quote) in October 2000.

Brinker, who did not return calls seeking comment, "has maintained a hold on those shares ever since," according to David Korn, editor of BeginInvesting.com, where subscribers receive summaries of Brinker's "Moneytalk" radio show, among other investment advice.

Since Brinker's October 2000 call, the QQQs are down over 60% and are off more than 50% since a reiteration in January 2001. Since March 11, however, the QQQs were up 26.6% heading into Monday's action, when they declined 1.4%.