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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: bob wallace who wrote (13349)	10/26/2000 8:20:44 AM
From: OldAIMGuy	Respond to of 18928

Hi Bob, Margin always acts as a sneaky double whammy. Just when we think the market should have bottomed, then Mr. Margin comes along and dumps a bunch more equity on the market. Near the beginning of this year Lemonhead and I attended The Money Show in Orlando. One talk I forced on poor Keith was to listen to James Stack. He showed a graphic he called "Is This A Bubble?" which showed the huge margin build up at that time. I remember LH saying after we left that talk, "I think I should call my broker and liquidate EVERYTHING!" It was that sort of talk! As it turned out, there was two months left to the bubble before it started to pop. Your margin calls will be the last echo of that event. It's funny how margin calls work almost as the mirror image of what is termed a "short squeeze!" Thanks for the comments. Best regards, Tom