Hey, Greg,
What do you know about? What is your background? Don't look down
this old man. He is the one of top ten to influnece the whole world
stock markets. Remember, last time, when Greenspan said, "stock market is overvalued". What happened? The whole world stock markets was tumbling. Even the MMs will pay a lot of attentions to Greenspan's
speech. When Greenspan speaks, MMs should shut up. When MMs speak, you
had better shut up. Why? If Greenspan raises interest rate, MMs will
withdraw a lot of money fromn stock market and put in the bond market.
What happen to stock market? Correction, barish will happen. Do you
have any money to play against these MMs? How about Jeffery Vinik?
Before 1995, he had a very glorious days, but 1996, he made a big
mistake and lost his job. He predicted the market would correct, and
interest rate would go up. He withdrew his money from high tech and
put 20% of his assets in the bond market, 10% in cash and 2.6% in high
tech. The average performance is 7%, way below the S&P 500 index's
16.63%. But actually, the interest rate doesn't change since January,
1996. Keep in mind, stock market is very sensitive to interest rate -- it means that stock market is very sensitive to Greenspan. Believe or not.
Best wishes
James |
