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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (24724)	1/6/2000 12:19:00 PM
From: j g cordes	Respond to of 67928

Current yields on bonds are justified based on dollar liquidity in the system. By the same token, the high liquidity provides the cash flow needed to run stock prices to these high valuations. Money is attracted to where its well received. Therefore there's an odd relationship that says as liquidity (money) is taken out of the system, bond yields shouldn't have to be as high.. and stocks won't burn as brightly. Financials would seem to be a good contrary play for conservative money. Jim