Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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

To: Casaubon who wrote (30112)	10/16/1999 12:54:00 AM
From: Jacob Snyder	Read Replies (2) \| Respond to of 99985

re: J6P: You said: "J6P doesn't cause this kind of decline. That's my point. They're not selling. The smart money is leaving now." A recent WSJ article made several points: 1. A record % of the population owns some stock, but 2. the amount they own is token. 3. The wealthiest 10% of us own 90% of all stocks, and 4. the wealthiest 1% of us own 50% of all stocks. Therefore, nothing J6P does (buy, sell, or hold) affects the market. He doesn't own enough to matter. The "smart money" is a small group of wealthy, confident, successful, educated people. Mostly men. Mostly white. It doesn't control the market, it is the market. They made the money in the bull market, and they'll lose it in the bear. Remember, even a couple of Nobel Prize winners in Economics can be "dumb money" when the market goes against them.

To: Casaubon who wrote (30112)	10/16/1999 4:06:00 AM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 99985

A few things. First, have you seen this? "Ghriskey and other analysts noted the PPI data was influenced by a sharp jump in tobacco prices. After taking out the impact of tobacco and also of higher automobile prices the core rate was up only 0.1 percent." Ok, I'm no PPI expert, therefore I don't know what exactly they mean by "taking out higher auto prices". This is the Producer Price Index, so do they mean the prices that parts producers charge to the auto industry for supplying parts for new cars? At any rate, how can just one segment of manufacturing go up that much, and not the others? Surely the US is doing more than manufacturing autos. But come on, tobacco! Everyone knows the fault for that lies squarely on the greedy State Attorney Generals. Helllo! The money for multi-billion dollar settlements has to come from somewhere, so of course it was passed on to the consumer. Anyone noticed what a pack of Marlboros costs nowdays, by the single package? $4.25. Considering that a couple of months ago they were $3 to $3.25, there's a whole bunch of money going from the smokers pockets, through the tobacco companies, and into the waiting greedy hands of the State governments, who have condoned selling tobacco for decades, because they love to tax it heavily. Now as to my other point: Just that it wasn't Greenspan's fault that "People" (rich or not) decided to sell THIS Friday. Greenspan is simply aware that the US stock market is grossly overvalued, and so gave advice to banks on protecting themselves. It's like, should we punish the little girl that notices that the emperor isn't wearing any clothes, if he indeed is naked? All Greenspan does is give good advice, and people act like he sold their grandma down the river for a barrel of whiskey. Without the effects of tobacco and also taking out automobiles, the PPI wasn't up squat: 1.2% annual basis.