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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (75288)	4/3/2007 8:41:10 AM
From: John Vosilla	Respond to of 306849

'They must create volatility if none comes forth naturally. If you just buy and hold you don't really do as well eh? He says financials and semi's have to go up soon, the big boys can't just keep pumping money into oil/energy - got to rotate - you disagree?' Financials have to go up? Disagree with that one. Many areas of tech plus drugs plus gold, water, waste, alternative energy, nanotech, biotech, flyover country RE The treasure is in there somewhere.<g>

To: shades who wrote (75288)	4/3/2007 5:31:46 PM
From: Oblomov	Respond to of 306849

Prices are determined by the relative eagerness of the buyer versus the seller. More like, marginal supply vs. marginal demand at the current quotation. Cash does not ever find a “home” in a secondary market. Every time you hear the phrase “investors are putting money into…” or “investors are taking money out of …” or “money is flowing out of … and into …,” it is a signal that the speaker is unable to distinguish a secondary market from a primary one. The distinction is not always clear. Many middle managers are compensated partly in stock. A higher stock price means a lower WACC, so in a particular situation it may be more likely to acquire another company in cash or stock (or itself may become an acquisition target). The calculations are complicated, and are best performed by investment bank MBAs with really expensive calculators.<s> What about the case of SMG? They made a judgement about their capitalization, and took on debt to pay out a big divi. So SMG holders took money out of the market. thestreet.com A holder of shares in a company paying dividends out of cashflows takes money out of the market regularly. Being able to do so is a major reason that people buy stocks. Like NFI, for example. <s> Just think, a 112% yield: finance.yahoo.com