Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (12779)	1/9/1998 10:00:00 AM
From: James F. Hopkins	Read Replies (1) of 94695

Bill; I think most of us, ( I know I ) have not payed a lot of attention to the bond market, ( in depth ). Particularly the JUNK BOND market. It looks like like the long bond has de-coupled from equities. Asset allocation is running to bond funds, and Corporations are issuing "NEW" bonds as fast as they can, and Funds are buying them up. So not only has the price of bonds gone up and the interest rates dropped, ( which is usually good for equities ) BUT there is now a huge flood of new corporate bonds hitting the market and absorbing the money that at other times would go into equities. This puts a new twist on my indicators, and one I don't understand very good. Looks like the Bears can feed for a while yet. Jim

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