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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST

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To: Roger Hess who wrote (3762)4/10/2000 9:46:00 PM
From: Keith A Walker  Read Replies (3) of 6531
 
OT: Great questions Roger...sure wish I knew the answers, but, my best guess is that if you look at it this way:

Aggregate equity markets = NYSE + NASDAQ + AMEX + OTC:BB

If the money people are willing to use to buy US equities equals the total value of the Aggregate equity markets (which is approaching $4 trillion) and that number doesn't go up (due to higher interest rates or attractive bond yields), then it is just like a big water balloon with a certain amount of water inside. Basically, squeezing one side pushes the water over to the other side and visa-versa. Until more water is added, the balloon can only oscillate back and forth as it is squeezed, rather than continue to expand if more water were to be added.

Seems like we have a stagnanting water balloon for a stock market these days. The kids squeezing the balloon are the "professional money managers" which are having too much fun with the sensation of the squeeze. (Day-traders may be having an impact, but, only for a small number of equities.)

FWIW.

Regards, Keith
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