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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bartlett who wrote (43153)	10/17/1999 1:30:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116764

Mark, The DOW is manipulated by many factors, the most important of which in my perspective is the proliferation of large mutual funds over independent money managers and stock investors. Large institutional funds distort the market by, 1.) by focusing on yearly gains which are impacted each fall by taxation events (window dressing, locking in annual gains, paying out bonuses to fund managers... etc). 2.) focusing on only the most liquid stocks while ignoring the broader market. That is why we constantly see the upper 10% of the S&P500 companies normally carrying almost 80-90% of total market capitalization. The overall stock market has been enduring a "stealth bear market for over a year now, with the majority of stocks already off of their highs by 25-30%+. We currently have only some 25% of all stocks trading above their 200 day MA. A figure of 20% is normally considered a "wash-out" (according to Muller Market Cycles) and indicative of a market bottom. And the DOW is CERTAINLY NOT AS MANIPULATED AS THE HANG SENG OR NIKKEI where direct govt intervention was publicly acknowledged. As for a 5500-6000 DOW, that's just poppy-cock. The US economy has been far too strong and productive, a trend quite likely to continue and accelerate as the Baby Boomers continue to invest for retirement (read Harry S. Dent). The REAL REASON that the US markets have been so strong is that foreign markets have been so weak, thus lessening the profitable investment opportunities outside of the US. I hardly see where making the Euro and Yen exchange rates less favorable against the dollar will assist their export oriented economies. It will only weaken their own economies as their profits decline and US profits increase (from the favorable dollar exchange rate). Btw, why is $400/oz "healthy" when the average cost of production is supposedly in the $200's and expected to go lower as technological extraction advances lower that CofP?? Looks to me like it's subsidization, if anything. Regards, Ron