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To: Mick Mørmøny who wrote (144719)	10/17/1999 3:57:00 AM
From: Mick Mørmøny	Respond to of 176387

'taint so. I bot, bot and bot. Count 'em, X3. :-o Are the Glory Days Over for the Dip-Buyers? By GRETCHEN MORGENSON NEW YORK -- Will they or won't they buy the dip? It has become a Wall Street truth that whenever share prices drop, bargain hunters throng to the stock market, providing a floor to equity prices and relief to damaged portfolios. Investors who have courageously waded in to buy the dips in recent years have saved many trading days from disastrous falls. And they've made big dough doing it. Unfortunately, last week, the dip-buyers did a disappearing act. The question is, will they be gone long? During the week, the markets certainly gave bargain hunters plenty of opportunities to buy. The Dow Jones industrial average lost 5.9 percent, and the Standard & Poor's 500 stock index fell 6.6 percent. Some market strategists think that the week was an indication that the days of the dip-buyer may be over. According to these people, investors today are less likely to jump in when stock prices fall. There are several reasons for this. Most important, the level of cash that investors have on hand to put into the stock market is low. For most of the major investor groups, cash reserves are near the low end of their 45-year ranges, according to Christine A. Callies, chief United States market strategist at Credit Suisse First Boston. In the second quarter, cash in American households stood at 3.59 percent of total financial assets, a new low and well down from 3.96 percent in the third quarter of 1998. Borrowings to buy securities, meanwhile, are at a record $155 billion, compared with $78.6 billion in 1995. Other investors have diminished cash holdings as well. Cash held by managers of mutual funds stands at around 2 percent of funds' total financial assets, down from 2.56 percent in the third quarter of last year. And cash available for investment at non-life insurance companies is 4.51 percent of total financial assets, the lowest since 1984. The only investors with a greater cash hoard are life insurance concerns, a group not known for aggressive forays into stocks. Even if investors had more funds to devote to stocks, Ms. Callies suspects that they would not be the asset of choice. "I think that some investors will still buy the dips but less than would have been the case four or five months ago," she said. "Confidence in high valuations tends to erode once investors realize that interest rates are going up." Dip-buyers have been AWOL in mutual funds as well. Robert Adler, president of AMG Data Services, said equity funds had net outflows of $1.1 billion in the seven days ended on Wednesday. Investors have also been abandoning high-yield bond funds, a place where they had been happy to park their funds during previous periods of market turmoil. Last fall, for instance, when the Russian collapse roiled the stock market, investors still felt comfortable putting money into high-yield funds. But in the week ended on Wednesday, 168 funds reported net outflows while 125 funds reported inflows. So, it seems that well before Thursday, when Alan Greenspan wondered aloud whether investors were aware of increased risks in stocks, mutual fund investors had been recoiling from risk. As Adler said: "When the stock market collapsed last year, money that left the equity markets was re-allocated to debt. This October, there is no evidence of a re-allocation. Risk aversion is spreading."

To: Mick Mørmøny who wrote (144719)	10/17/1999 1:33:00 PM
From: Ian Davidson	Respond to of 176387

Sunday October 17, 1:14 pm Eastern Time FOMC member McTeer downplays U.S. "asset bubble" DALLAS, Oct 17 (Reuters) - Dallas Federal Reserve Bank President Robert McTeer, the only member of the U.S. Fed's policy board to vote against the last two interest rate increases, was quoted Sunday as downplaying claims the U.S. economy was in an ``asset bubble' of high stock prices. Interviewed in Sunday's edition of the Dallas Morning News, McTeer said historical evidence showed that stock market bubbles appeared to be dangerous to an economy only when they were tied to a similar strong rise in real estate values. The newspaper asked McTeer to respond to criticism leveled recently by the British news magazine The Economist that the strong U.S. economy was based in part on asset inflation that could burst like a bubble. ``They may be right or wrong. I don't know,' McTeer said. ``To say that they are right means that you now more than all the people who are buying stocks. More than the market. I don't think that's my business,' he said. ``What I can tell you is that historical studies show that there have been few stock market bubbles alone that have been harmful. They appeared to be dangerous only when they are coupled with real estate,' he said. McTeer did not elaborate in the interview. Fed chairman Alan Greenspan brought the issue of asset prices back into the limelight in a speech last Thursday when he cautioned U.S. banks to prepare for possible sharp declines in the prices of stocks and other investments. While emphasizing that he was not predicting such a downturn, Greenspan told a banking-related conference that losses in investor confidence ``will inevitably emerge from time to time' and said financial institutions should boost their reserves to account for that possibility. Greenspan's comments, plus a surprising jump in U.S. wholesale inflation, sent U.S. and world financial markets into a tizzy. The Dow Jones industrial average plunged 266.90 points or 2.59 percent to 10,019.71 Friday and stock markets in London, Paris and other exchanges around the world also posted strong declines. McTeer was the lone dissenter against interest rate increases approved by the Federal Open Market Committee, the Fed's policy-making board, at its meetings on June 29-30 and August 24. In minutes of the meetings released with the standard six-week delay, the majority of the FOMC argued that rate rises were necessary to keep the economy from overheating. The board voted both times to increase the federal funds rate and the discount rate by a quarter percentage point. But McTeer argued in those meetings that rising productivity and continued price competition were enough to keep inflation at bay without higher interest rates.

To: Mick Mørmøny who wrote (144719)	10/17/1999 1:42:00 PM
From: OLDTRADER	Respond to of 176387

RE:Crash-After risking my own "that's like my own hard earned money ---not the "Inherited Wealth type" -- capital and "not" listening to 45 years of short seller "mantra"/inflation scare talk ,like crash is coming, the crash is coming -run for cover-I have made what I have by NOT listening these "Wall Street BS artist or big wire-house agenda spouting corporate finance department flunkies".----This&^&)% market is going higher and starting very soon.Hope the pack sells ---so I can buy.wbm