SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: orkrious who wrote (79863)3/11/2007 11:33:26 AM
From: Perspective  Read Replies (1) of 110194
 
<Whenever I read something like that I think the spoos will open the next day down 4%.>

The problem is that in order for the market to actually go DOWN, somebody has to do something different than what they've been doing. It requires a change in behavior. Are the forces that have been buying going to stop buying? Is it going to stop the major source of cash flow right now - corporate buybacks? No. Is it going to prod any of the complacent public to actually question the wisdom of having their entire retirements tied up in stocks? Hell no, Wall Street - the "experts" - are still telling them that stocks are the only way to go for the "long haul". And the folks running that OPM don't give a rats ass - they don't care if they lose people's 401k's - they're just trying to match their benchmarks.

I think the market has likely gone from a leading mechanism to more of a lagging mechanism as the source of buying has shifted from investors to price-insensitive flows from corporate buybacks and the games played by hedge funds. It may be that until after the economy has tanked enough to dry up corporate liquidity, or until hedge fund liquidity is finally reduced, that nothing really matters.

Of course, the blowing up of subprime may produce the recession that finally hits corporate cash flow, and more directly, it may be sapping hedge fund liquidity.

BC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News