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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (20735)	1/7/2005 6:07:19 PM
From: Tommaso	Respond to of 116555

All in the world it takes is rather modest, protracted, outflows to cause serious downward destabilization of the equities markets. The minute mutual funds are compelled to make steady sales to meet redemptions, and the managers decide to increase cash balances to meet these redemptions, the bottom will drop out of the equities market. The continual rises in interest rates by the Fed make it increasingly attractive to hold cash balances. I think we are only a short step away from sheer panic, as could well have occurred as far back as 1998, except that the Fed forestalled every incipient decline with new accommodations. The forestalling is over and the panic could occur any time.

To: mishedlo who wrote (20735)	1/7/2005 6:48:10 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 116555

or finally they are simply running from danger that's were the game ends IMO. When tv nation wakes up, all hell breaks loose. also the beginning when finally, stocks are considered so untouchable, a new market begins with great values. obviously we're not there... but to get there... general sentiment has to change from the who gives a shit attitude towards credit, to climbing over woman and children into the life boat. imo.. we are in the beginning "creep" of just that very thing. people look like shit. they look like they are just about done running the gauntlet down at the optimist klub. my 2 cents. worth about 1.73 cents in europe at the moment. ho ho ho