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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (50154)	5/10/2000 2:38:00 PM
From: pater tenebrarum	Respond to of 99985

YZ, well, that is of course possible. i was looking at mutual funds only. however, regarding pension funds and insurance cos, last months data revealed that the long bull market had driven the percentage of their assets allocated to equities to a historical record, slightly above the previous record reached in late '72. i believe fiduciary duty forces them to reduce that exposure, or at the very least not increase it.there is also some relatively new research out there that tries to debunk some of the myths in modern portfolio theory and the risk evaluation models currently widely used by banks, hedge funds and the like. i think this type of research is getting more attention lately. btw, you are right, many money managers admit privately that it is a bubble. but like the mutual fund cash-to-assts ratio shows, with other people's money that's not really considered a problem. since the funds are all sitting in the same boat, they figure it is better to be fully invested and risk losses than risk missing out on the next up-leg. it's like the strategists and analysts on WS. if you're bullish and wrong, nobody will complain. if you're bearish, you better be right, or you'll get the boot. regards, hb