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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: A.L. Reagan who wrote (19019)	2/22/2001 6:54:39 AM
From: Walkingshadow	Read Replies (1) \| Respond to of 19374

A.L., << What do you make of the huge increases in money market fund assets? Temporary repository of the liquidity injections? Where will this money go, especially if S/T rates continue to decline? >> I didn't mean to imply that there is not a lot of cash on the sidelines. Certainly there is, and it has been piling up as the big money has fled the NDX---and will eventually be the required source of raw material for the next bull run. However, my main point is that much of the money fleeing the NDX has gone to the safe harbors in the listed stocks, rather than cash. Also, that the order of cash flow tends to be first to safer equities, and then when those appear too risky, to cash and treasuries. And, as you point out, the next step is back into equities as the returns from cash and treasuries become unsatisfactory and valuation and other models indicate that the risk/reward profile offered by equities becomes acceptable and increasingly attractive. However, the NYSE stocks have not suffered to anything like the extent the NDX stocks have, which in itself tells me that it is being temporarily propped up by money flow from the NDX. This doesn't, in my mind, always mean that the NYSE stocks will necessarily follow the same course the NDX stocks have. But a true bear market driven by deteriorating economic fundamentals is widespread and far reaching, and in such a case this is very likely the course that things will take. << ....this poor player is going to capitulate the SI stage for tonight, and tick, trin and vix my way outta here to be heard no more. >> LOL! Well said. Methought I heard a voice cry, “Sleep no more! Macbeth does murder sleep!” the innocent sleep, Sleep that knits up the ravell’d sleave of care, The death of each day’s life, sore labour’s bath, Balm of hurt minds, great nature’s second course, Chief nourisher in life’s feast. Macbeth, II. Sc. 2 But then, OTOH: To sleep: perchance to dream: ay, there ’s the rub: For in that sleep of death what dreams may come, When we have shuffled off this mortal coil, Must give us pause... Hamlet, III. Sc. 1 WS