Lizzie, look at the data.
We have had fund inflows for years and years. Period.
This is without question.
People have decided to ride it out.
In fact they kept pouring more $ in on the way down.
Finally, after all these years, outflows just last year started. Whether or not you think the market goes up or not is a different story.
I don't believe we need the outflows to even come close to the inflows over the years though, because the market took care of that for us. A 95%+ decline in naz mkt capitalization pretty much dealt with it. The combination of this bear and halted inflows (which you seem to agree with me on) means the public is gone, and the money that he had in the market is gone. Especially the naz I am talking, I don't know about the S&P really.
No new money coming in, fund cash levels zero, trading volumes 1/3 of peak, naz issues at 1982 levels and overall mkt capitalization for nasdaq down 95%, huge layoffs/depression like work climate so no ESPPs, what else is there?
This (2003) market reminds me of 93/94, its definitely not like the late 90s, when every tech sector went up. But in 93/94 if you were invested in the hot areas.. peoplesoft, oracle for example and companies like those, you did great. Thats how it is now it seems to me. You can make money shorting the weak stuff and make money long in the emerging growers in tech.
Lizzie |
