To: Sully- who wrote (42232 ) 9/20/2001 4:25:56 PM From: stockman_scott Respond to of 65232 Who's Doing the Selling? By James J. Cramer 09/20/2001 01:14 PM EDT So if I am not selling, and you are not selling, and they aren't selling, and the companies are buying hand over fist and nobody is offering any new stock, when does supply balance with demand? I keep thinking about that issue because it is obvious that someone is selling, and the reason why we are continuing to go down is that the selling is extraordinarily lead-footed and indiscriminate. Here are some theories about who is doing the selling. 1. Mutual funds that have lost key personnel and are battling redemptions. The same mutual funds that always say they have no redemptions are all saying they have no redemptions. I am beginning to believe that no one can tell the truth at these places, frankly. 2. Individuals who are afraid of the Lucent (LU:NYSE - news - commentary - research) phenomenon. That's where you have all of your nest egg in your company's stock and you think it could go away. These people are diversifying into bonds. Can't criticize them. 3. People who need money. As long as the great '90s boom went on, nobody needed money. But we always knew that money was there if we needed it. People who viewed the equity market as an extended bank are now letting stocks go to raise money because they need the money. They are worried that they are going to lose their jobs. Given the incredible number of layoffs announced since Sept. 11, who can blame these people? 4. Insurance companies. Insurers who may have owned equities as a percentage of your premiums that they are investing have to pull out to meet the demands -- the once-in-a-lifetime demands from the attack. 5. Finally, the hedge funds. Yes, the hedge funds, who are not shorting, but raising cash in case there is another attack. They want to be able to buy, not sell. In their world, you can't buy before you have sold. Read my Cisco/Trader's Market piece to see how they are most likely playing this market. Random musings: I wish Washington seemed more inspired and less worried. But then again, I wish Winston Churchill were still alive, or Reagan were still president. *************by the way, Cramer is a huge Al gore supporter - for him to want Ronald Reagan is most unusual....************