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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Hawkmoon who wrote (2388)1/15/2000 3:50:00 PM
From: TimbaBear  Read Replies (1) of 3536
 
"....We have seen the broader market PULVERIZED (71% of all NYSE stocks are below their 200 DMA) in order to meet the margin calls against short sellers...."
Maybe 71% of the companies on the NYSE are operating inefficiently and until they get more efficient, they will get continue to get pulverized....JMO...that might be the real message the market is sending.

If hedge funds are the major source of your concern....then the leveraging through options might be the source of remediation.

Let's see, if I use your formulation, I can buy one of the 71% "value" stocks that don't perform well, and borrow against that dead money to get money to work for me?....do you think Greenspan would call that the efficient use of capital?

I guess the difference here is one of institutional versus individual investor....as an individual investor, I would be more disadvantageously affected by regulations proposed to handle the abuses by the institutions....that's my main gripe in this issue.
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