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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: getanewlife who wrote (10132)	12/3/2001 4:03:09 PM
From: 4rthofjuly007	Respond to of 99280

I think he is saying that with money market rates so low, people will put money in stocks due to a lack of other options. This is not the case for me. I wouldn't go long this market on a dare except after extreme sell-offs and just for a traders bounce.

To: getanewlife who wrote (10132)	12/3/2001 5:49:46 PM
From: t2	Read Replies (3) \| Respond to of 99280

I was referring to the low interest rates on money market funds. That is something one has to look at when evaluating investing alternatives. Interest rates of 2% can make one look at safe stocks with low PEs and dividends...a better bet with still low risk. This leads to money then getting rotated among sectors (and between value and growth). Tom McManus of Bank of America was on TV a little while ago pushing food stocks as an attractive alternative (although he was not so bullish on the market right now---he changes his mind frequently) Basically, in the end it lifts the markets in general even if the conservative buyers of stock only buy only value stocks. In addition, I don't think Greenspan is even considering raising interest rates in the coming months--imho.