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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: ild who wrote (54644)2/24/2006 12:12:39 PM
From: ild  Read Replies (3) | Respond to of 110194
 
Date: Fri Feb 24 2006 10:55
trotsky (Bleuler@Individual Investors Shift Assets to Stocks) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
there's nothing 'incipient' about this imo. this is what usually occurs close to the end of a move.
a revealing sentence is for instance this one:
"Charles Schwab Corp., for example, saw $4.5 billion flow into its stock mutual funds last month, the highest amount since February 2000, when net investments hit $4.7 billion."

well, February of 2000 was one hell of a time to be moving record amounts of money into stocks. the same holds today, as two of the conditions pertaining at the end of the Nasdaq bubble once again pertain, namely an inverted yield curve, and a record low in the mutual fund cash-to-assets ratio.
what did these people do at the lows in July and October of 2002? they moved money OUT of stock funds in what were then multi-year record amounts.
this recent urge to pile in at the top is a MAJOR intermediate term sell signal for the stock market. the rubes have arrived, for the professionals to distribute to.