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To: Scott Bergquist who wrote (6410)3/8/2003 10:47:42 PM
From: Chris McConnel  Read Replies (1) | Respond to of 29601
 
Wish i knew.

If the mutual funds have low cash positions, then there's less fuel for the rally fire. A rally would probably be fueled by short covering, and reallocation of bonds to stocks.

This article does a good job of presenting both sides of the war rally issue:

moneycentral.msn.com