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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (3128)	5/5/2000 10:29:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 3339

Actually there was no panic among fund managers either, to judge from the fact that mutual fund cash levels as a percentage of assets are lower than ever. TrimTabs and AMG Data show continual inflows of new cash since the beginning of the year; the market declined in April; and yet the percentage of cash in funds also declined. In other words, fund managers went right on putting money into the market. Cash levels are at all-time lows. The markets lost a trillion dollars in value in a week in April, but only a very little money was actually removed from the markets. A little cautious selling, for various reasons that included Abby Joseph Cohen's recommending a small shift into cash, was enough to cause the drop. That's why some of us are concerned about what will happen if there is an effort to liquidate just a slightly larger percentage of equities. The minute no one wants to buy something, there's no market for it.

To: Dale Baker who wrote (3128)	5/5/2000 10:37:00 AM
From: Professor Dotcomm	Read Replies (1) \| Respond to of 3339

Some salutary discussions going on here. IMHO, they are still a tad premature. It is difficult to rationalize a bubble until there are clear alternatives for money to go into. Inflation really has to start again to provide alternatives like gold - or at least more tempting short term interest rates.(Tulips crashed when the Amsterdam cost of living started to soar). The best would be if the Nasdaq extended its correction to the 2500 - 3000 area - which could well happen with today's news that $128 billion of Internet shares will be released from lock up provisions this month. If this happened and the frothy stocks (like INSP et al) get clobbered, this good old bull market could be with us yet for several years.