" i know quite a few babyboomers that have only in the
last few years started to throw money in their 401Ks and IRAs and they're throwing alot in them to try
to make up for lost time. supply and demand says if those folks keep up the pace of buying stocks and
mutual funds then the carousel keeps spinning. "
That's the interesting part of the whole game. Its these fund flows which seem to be geared towards the tech sector, but what's really moving the market is that non-tech funds like the big ones like Magellan, etc, are throwing a bunch of their money into these tech names for the sake of performance. There have been so many IPOs and secondaries over the past several months that the supply of a lot of these hyped up net names are beginning to swell. I can't even tell apart a lot of these net stocks because a lot of them seem to do the same thing, and can only be differentiated by their charts and hype.
Lately, I've noticed everyone talking about liquidity, and strong fund flows into the mutual funds and 401Ks, etc., but hasn't this been going on for the last 5 years? However, the fund flows cannot soley explain this type of manic, 500% YTD returns for many tech stocks. I have never seen this type of all out slop fest by the pigs. Momentum retail investors are multiplying in number and getting real cocky.
The further and further away we get from the fundamentals, the more deadly these declines will be for many of the I-nuts. I fathom seeing a lot of future VUSAs and ETOYs and RHATs in the coming months in the B2B and wireless sector.
The funny thing is, everyone is scared of shorting them when they are rising, but are more than willing to short them at lower prices when they are falling. I remember that happening with ETOY and RHAT.
Streethawk |
