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Strategies & Market Trends : Moomin Valley (formerly Troll-free Zone)

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To: RealMuLan who wrote (1321)4/27/2006 7:03:33 AM
From: Moominoid  Read Replies (1) of 2852
 

Really? I remember back in 1998-1999, IBM as well as Dell and many other companies spent huge amount of money buying back their shares. So what is the difference this time?<g>


Yes you are right, but there were more IPOs then also. Lots of mergers now - not always clear the acquirers are the ones with the overvalued shares - so a lot of similarity but not as outrageous this time.


As for the bag holders, I would like to add domestic (US) small investors. Yes, they are too, along with mutual funds and foreign investors.


Yes, but there are fewer I think this time around. Much more money is invested through mutual funds (and ETFs) than direct into stocks by small investors (less than $100k investable assets maybe). All those 401(k) s and 403(b) s are mostly in mutual funds.

Europe down 1% plus at moment and NDX futures down 8 points... don't why. NDX hasn't got to new highs while SPX, Composite have. Somewhere I read about that as a leading indicator - it's what happened in 2000 - I tend to agree.

PS - due to an interest rate hike in China?!

yahoo.reuters.com

Later today I teach about international capital flows and then the exchange rate in Intro Econ. Had to revise my stuff on the Chinese exchange rate since last year :)
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