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Technology Stocks : Discuss Year 2000 Issues

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To: JBTFD who wrote (9697)1/4/2000 3:06:00 PM
From: Hawkmoon  Read Replies (1) of 9818
 
Yes, I'm sure that the liquidity is being withdrawn. It will take time but that will create inflationary pressures.
Less money to go around and prices will rise.

And actually, this economy could use a bit of inflation in order to give smaller companies some pricing power. AG is just worried that this inflation has been "hidden" and is ready to manifest itself in an uncontrolled manner. That is very possible as the lack of serious disruptions overseas will likely lead to capital moving back to the peripheral economies placing pressure on commodities.. etc.

This year promises to be very volatile.

One more point... something on the order of 75% of all NYSE stocks are trading below their 200 MA. This market from November onward has been very narrow, with money coming from the broader market stocks (sold as tax losses) and the money thrown into the winners.

That course almost always reverses after the first of the year, where the "dogs of the dow" manage to outpace last years winners.

I personally would love to see the small cap and broader markets catch up with the big-cap indices. It's unhealthy to have some a narrow leadership.

Regards,

Ron
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