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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: BubbaFred who wrote (48089)	4/6/2004 3:14:26 PM
From: energyplay	Respond to of 74559

Bubbles lasting - "There seems to be a mechanism in the market that allows bubbles to last much longer than they should, just enough to cause general complacency and deep slumber that will result or cause max pain for the small and medium shareholders (plus retirement plans). There is something that allows the bubble to stretch and expand to the max pain bursting stress point. I think it has to do with the flow of money into those mutual funds, and when 5% decides to pull out (i.e. wise enough to say thank you), then there is a significant outflow imbalance and mutual funds are forced to sell without equal buys. However, as long as there is net inflow into mutual funds, the market bubble can perpetuate or maintain the bubble - which is currently the case." A very useful observation. I shorted tech stocks in summer of 1999 - ouch ! Did better in spring 2000, but covered too soon.