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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (80263)4/29/2000 6:20:00 PM
From: Spekulatius  Read Replies (2) of 132070
 
NASDAQ and NYSE as coupled chambers.
The action at the NASDAQ and at the NYSE remind me more and more on the priniciple of coupled chamber.With a given amount of fluid (=money) one can raise the level in one chamber only by reducing in the level in the other. I have observed this behaviour more and more with the value stocks on the one side and the NASDAQ on the other.
Its becoming more and more clear to me that the amount of money in the market is limited. Clearly, money gets pulled out of safe stocks when the Nasdaq becomes bullish.
Of course this does not hold true only to a certain degree, but I still believe that value stocks can serve as a hedge against a NASDAQ selloff. Unless there is of course a real panic, a stampede tends to bully down just about everything.
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