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To: saukriver who wrote (103261)	8/24/2001 10:00:29 PM
From: Robin Plunder	Respond to of 152472

Saukriver, one of Hays principles is that 'when my model turns bullish, focus on the positive news'. This is because, at the bottom of the cycle most of the news will be negative, and you will need to deliberately look for the positives in order to avoid getting swamped with non-essential negative emotions. Here is another positive that he mentioned today: there are currently 2.1 trillion dollars in money market funds, which is up 400 billion from last year, and is 19% relative to the value of US stock equity. This percentage is an all time high, up from 16.7% at the bottom of the 1990 recession (he got this from a Smith Barney report). As interest rates drop, that money will be moving into stocks. One might also wonder how this high cash level relates to the high levels of debt for individuals....whose money is this in the money market funds, is it available to counter some of the high debt levels? Of course, conversely, when his indicators turn negative, then it is time to focus on the negative news, and not get beguiled by the positive news....but we aren't at that point now...:) Robin