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


To: Stephen M. DeMoss who wrote (51385)5/20/2000 1:38:00 PM
From: Stcgg  Respond to of 99985
 
Stephen - What To Do With Excess Funds..

That's my job.. I short stocks based on both fundamentals and technicals (for timing).. If you come into this market with all your excess funds, I promise to lighten your load!

Now, once the wealth transfers, I will park it in safe and profitable CD's and bonds until the technicals and fundamentals in stocks turn around..

-gg-



To: Stephen M. DeMoss who wrote (51385)5/20/2000 5:10:00 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 99985
 
Steve, the world is a big one there are several billion people out there and opportunities abound, for sure more profitable than stashing excess cash in the US stock market.

Aside have you ever heard of solid old fashion investments in CD or short term bills?? they return around 6.5% to 7% a year.

Haim



To: Stephen M. DeMoss who wrote (51385)5/20/2000 5:58:00 PM
From: KyrosL  Read Replies (2) | Respond to of 99985
 
Steve,

don't extrapolate your situation to the population at large. The "new money" created by the booming economy is being spent.

- The savings rate in the US is near all time lows. People are spending like there is no tomorrow. The trade deficit, running at a $360 billion annual rate is indicative of this.

- Average household debt as a percent of disposable income is at all time highs, having exceeded the 100% mark recently.

- Stocks are high because people and institutions continue allocating the lion's share of investment funds to stocks, to the exclusion of alternative investments. The relative value of stocks in individual and institutional portfolios is at all time highs.

Meanwhile ...

- High grade municipal bonds yield 6%, which is equivalent to a 10% taxable return.

- High grade corporate bonds yield near 9%

- Risk free 2-year treasury notes are nearing 7%.

- Even money market funds yield over 6%

Seems to me there are plenty of places you can put your money, where you don't have to wait for decades to see actual returns.