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Pastimes : The New Qualcomm - write what you like thread. -- Ignore unavailable to you. Want to Upgrade?

To: qdog who wrote (656)	10/17/1999 11:17:00 AM
From: T L Comiskey	Read Replies (3) \| Respond to of 12252

qdog....re:Worried Monday...?...............................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: qdog who wrote (656)	10/17/1999 2:16:00 PM
From: Michael	Respond to of 12252

My friend Qdog: Ohio State Buckeyes lost this year. But dont you dare bad mouth, them. Lost too many players from last years team. ABC didnt show game on west coast. Guess that was good. sure is a nice day Michael

To: qdog who wrote (656)	10/17/1999 3:12:00 PM
From: Eric L	Respond to of 12252

qdog, << PSU #2, JoePa 314 ... Dee finally lived up to it's reputation >> Missed it (golfing) but glad you think the Dee looks good. As for Monday ... still have some cash. - Eric -

To: qdog who wrote (656)	10/17/1999 3:26:00 PM
From: DaveMG	Respond to of 12252

So no one is worried about Monday Worried? I'm looking forward to it..:O)