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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (48788)	11/8/2003 7:39:57 PM
From: PuddleGlum	Read Replies (3) \| Respond to of 57110

MD- I was looking for a chart that showed money supply back in 1999-2000, but couldn't find it. As I recall, somebody shut off the money press in January 2000, and a few months later the markets peaked and then went skiing. Cause and effect was apparent, but not absolutely certain, but in principal the law of supply and demand applies quite well here. Some percentage of new money will chase stocks, and when money supply is tightened some money will come out of the stock market into other vehicles. With high liquidity the market will shrug off some news items that it can't deal with when liquidity is lower. Did that answer your question? Perhaps it wasn't as precise as what you hoped to hear, but I am not able to be more precise at this time. Anyway, based on your prior posts I tend to consider you as more of an economist than I am.