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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: No Mo Mo who wrote (42557)11/30/2000 4:57:53 PM
From: pater tenebrarum  Read Replies (2) of 436258
 
knowledge of market history comes in handy in times like these...i must add another tidbit though: since there were no index funds in past bear markets, which by their nature are fully invested all the time, one has to probably allow for slightly lower cash levels than the historic high/low bands. still, the current cash levels are not yet consistent with a major low imo. what's more, the really big, market moving funds like Fido's Magellan have very little cash. Magellan as a rule has only slightly above 2% in cash. when they buy, they usually rotate out of certain stocks to be able to buy others. i believe that this particular fund is the main culprit in the extreme rotation we have seen this year.
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