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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Psycho-Social who wrote (83864)	6/2/2003 5:55:34 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 99985

The only data I have relates to cash in stock funds, and that's at 5%, much closer to the bottom than the top of its 3.9% to 12.9% historical range. I wish I could post an actual source for that.. I heard it either on TV or the radio the other day as a indicator an analyst cited.. I've heard it used before as an indicator of how much cash is available to fuel stock price growth... Hawk

To: Psycho-Social who wrote (83864)	6/2/2003 11:51:10 PM
From: t2	Read Replies (1) \| Respond to of 99985

Cash on the Sidelines? Seems like the "Cash on the sidelines looking for a home" scenario needs more research. The only data I have relates to cash in stock funds, and that's at 5%, much closer to the bottom than the top of its 3.9% to 12.9% historical range. I don't think they are referring to mutual fund cash levels. I believe it is money market funds and we know how these types of funds got very popular during the bear market. It is these type of safe short term funds in which the returns could become negative..if inflation just ticks up a bit. So they may start chasing alternatives such as stocks with reasonable dividend yields..and of course if one stock sector starts getting a lot of flows, it has a ripple effect in the market. Of course there are lots of other factors that have been moving stocks too.