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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Jdaasoc who wrote (29267)	10/2/2001 12:00:20 PM
From: The Freep	Respond to of 30051

<<I am afraid of market has no where to go but retest last weeks lows fairly quickly. >> Well, it sure might. But why do you say that's the only option? From a simple standpoint, the Dow and S+P keep making higher highs and higher lows. Admittedly, they're not setting the world on fire, either, but why do YOU say that there's "no where to go" but lower? Just curious, and not saying we won't go lower, either. But such a definite statement makes me ask questions <g> the freep

To: Jdaasoc who wrote (29267)	10/2/2001 12:10:11 PM
From: pompsander	Read Replies (1) \| Respond to of 30051

John: Rebalancing flows might be having some impact in here, at least as far as building base. I sat in a pension management meeting on Monday. In order to rebalance to our guidelines for the Trust (60% stock, 35% bond, 5% real estate) we moved over one billion dollars from bond to stock managers. Lots of this going on....a purely fundamental process, unrelated to immediate outlook for an investment class. I think these flows will have impact over time, along with Fed pump priming and legislative economic stimulus. Besides (even if we were to look at the practical side of the equation, the liklihood of our former bond allocation returning much of anything over the next few months is pretty darn low. 2-3% (maybe) is not very exciting on the fixed side.) I see the basing action of the past few days as a coming together of all these elements in the economy and the financial system. I think there is more upside potential than down at this point. If the Taliban implode (and we handle that event properly) we could see some very nice reaction.