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To: Rational who wrote (17839)9/23/1999 11:16:00 PM
From: Naveen Kumar  Respond to of 18056
 
The bounce back will be a selling opportunity. My guess is stay in MM or Treasuries till year-end.



To: Rational who wrote (17839)9/24/1999 8:31:00 AM
From: Cynic 2005  Read Replies (1) | Respond to of 18056
 
<<The real dilemma is where will the money from sell-off go? >>
Just 7 short years ago there used to be some things called CDs and Money Markets. People were happy with 5, 6, 7 or 8% returns. They will re-discover them! -g-

<<To Europe or Japan, where the markets and asset prices are already over-bloated? >>

With all due respect, it is not necessary to keep chasing the next 'hot' thing. The easy money policies around the world have precipitated this thinking over the last 10 years. Again, there is nothing wrong with 4-5% returns.

<<Now, if you are worried about the asset values being artificially high, the money has to be shrunk; i.e., for example, dollars, credit lines, bank loans, etc. have to be taken off the market. >>

I am not trying to preach the choir. We may get the cause and effect in a reverse order. i.e. shrinking money may not bring the asset prices down but shrply reduced asset prices shrink the credit supply.