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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Mephisto who wrote (46613)	3/31/2000 7:09:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 94695

Mephisto: that's simple...they were buying. the reason why stocks haven't done much in spite of this is that their buying was met with record high insider selling as well as IPO's and secondaries. in other words, the total trading float increased slightly more than the liquidity needed to support it... regards, hb PS: by far the biggest buyers in recent years were corporations with their stock buy-back activities. in '98 they were using 125% of their reported profits for buybacks. however, corporate debt has risen to record levels in terms of debt/equity and debt/GDP, as well as in absolute terms of course. since corporate bond yields have refused to follow treasury yields down, this exercise (buying back inflated shares with debt) has become that much more of an economic nonsense. it can therefore be expected that this source of trading float reduction won't be as reliable anymore in the foreseeable future as it was in the past. those fund inflows better keep coming in other words...:)