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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (11831)	9/25/2003 9:02:24 PM
From: Gottfried	Read Replies (1) \| Respond to of 95530

Sarmad, I think 'money on the sidelines' means it's not in stocks. Gottfried

To: Sarmad Y. Hermiz who wrote (11831)	9/25/2003 9:57:19 PM
From: EACarl	Read Replies (1) \| Respond to of 95530

RE "I think the only way true new demand for stocks can occur is that if foreigners take dollars out of their mattress and deposit it into a US bank and use it to buy stock." How about the tens of millions of Americans who have a portion of their paycheck automatically going into their 401(k). There's an endlessly replenishing well of money that's headed for the market, in one way or another, and at one time or another. Eric.

To: Sarmad Y. Hermiz who wrote (11831)	9/26/2003 12:09:15 AM
From: robert b furman	Read Replies (1) \| Respond to of 95530

Hi Sarmad, I may be wrong here, But when you buy a stock from a broker on margin,it doesn't mean somebody sold it. It means the holder of your margined certificates levergaed the paper certificate a second time. They give it to a bank as collateral for a loan,which they offset with your cash when you buy it. It is collateralized and it is leveraged.JMHO If they don't have the stock they go to the MM,and he shorts it and creates additional float.Addition through subtraction. Ultimately at a top it collapses because the purchasing power cannot keep up with the created float.Ultimately the price falls on its own weight and the person making money is the MM. Know many millionaires who just made it shorting this last bear market - me either. The money made was at the exchange. How else do you think NYSE pay Gasso 139.5 million? It has to come from somewhere!! It is a good ole boy club personified. I'm not mad about it - just trying to understand it! Bob P.S. Futures up nice now.GG

To: Sarmad Y. Hermiz who wrote (11831)	9/26/2003 11:33:09 AM
From: Sam Citron	Respond to of 95530

Sarmad, What you say may have some validity for the commodities market where there is a short position for every long position outstanding so it is a zero sum game and for equity markets in the normal day to day activity. In the stock market there are relatively few short positions outstanding. When the market goes up it's a positive sum game. When it goes down, it's a negative sum game. It causes the money supply to expand and contract independently of FRB action. Don't forget that the essential function of the capital market is for companies to have an alternative source of raising capital other than through debt. It's role as a casino is only a sideshow to offer liquidity to speculators who allocate capital between one sector and another. When the market gets to certain levels companies come forward to issue new shares to the public in initial and secondary offerings. This is when the money really leaves the sidelines. Your point is well taken. Sam