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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (28891)	10/8/1999 10:44:00 PM
From: TimbaBear	Read Replies (2) \| Respond to of 99985

As always, cogent arguments....I would, however, disagree a bit...."...interest rates are far more important to stock prices than earnings..."....earnings (or the anticipation of earnings) must always be the prime mover of stock price, interest rates are only important in how the interest expense may impact the earnings....the internet is opening the world as potential consumers to every enterprise and it is the anticipation of earnings that is driving the current valuations....I agree that the valuations for those companies that don't currently do business profitably will come back to earth and shatter the finances of those who hold the shares last. Secondly, ..."nobody seems to care much about the fundamentals anymore,..."....I think that the evaluative tools and the opening of the sources of how to use them, books, web forums, etc. have allowed many average Americans to learn an amazing amount about how to invest and what constitutes a prudent investment....granted, that has also allowed a lot of gamblers to play the markets instead of the horses, but I think you may be painting investors with too broad a brush here....I think the average investor is more market savvy now than at any time in US history.

To: pater tenebrarum who wrote (28891)	10/9/1999 7:16:00 PM
From: Don Green	Read Replies (1) \| Respond to of 99985

Individuals' Share Of Stock Trades Reaches 7-Year High Saturday, October 9, 1999 TOKYO (Nikkei)--An increasing amount of individuals are returning to the stock market with their combined share of turnover at the Tokyo, Osaka and Nagoya exchanges totaling 29.2% in April-September, a seven-year high, according to the exchanges. Individuals are trying to reap higher returns in the stock market amid historically low interest rates. As an increasing number of brokerages are offering ever lower commission fees for online transactions, individuals' presence in the market may grow even more, market observers say. Individuals sold shares worth some 19.32 trillion yen in April-September, while purchases were valued at around 19.06 trillion yen. Turnover was 330% higher than the figure for the same period a year earlier. Their share of total turnover (excluding trades conducted by brokerages for their own accounts) jumped 16.4 percentage points year on year and was the second largest next to that of foreign investors, which came to 40.1%. Foreign investors were the main force behind the market rally that began in March. From March, privatization issues such as Nippon Telegraph and Telephone (9432) gained, as did over-the-counter shares, many of which are held by individuals. This prompted individuals to step up investment. "Many individuals switch to other shares as soon as they have pocketed profit on their holdings," said one observer at a major securities house. (The Nihon Keizai Shimbun Sunday edition)