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To: Defrocked who wrote (3051)10/25/1997 8:09:00 PM
From: Joan Osland Graffius  Respond to of 10921
 
Defrocked, >>However, I am unsure of investor and Mutual Fund response given the large profits still (as of Friday) on the table. A slowdown in consumer spending could be likely. This would be positive for bonds and eventually again for stocks.

I agree, the wild card is the investor. Fear and greed move markets and I have no idea where this thing is headed.

Good write-up,

Regards,
Joan



To: Defrocked who wrote (3051)10/26/1997 5:25:00 PM
From: LLCF  Respond to of 10921
 
<I've been theorizing about today's markets
with intertwined financial systems.>

<Today's markets quickly discipline wayward government
spending and policies since there exist so many easily
accessed alternatives>

Are you saying you have "invented" this theory (idea)?

<My hypothesis is that these positive and negative aspects
aspects of liquidity and rapid capital deployment may
balance out over time. In this environment one would
expect large and sudden capital movements to
dampen in the future as governments become disciplined
by the negatives and instead pursue positive economic
programs.>

How about the stock market (investors)...when will they be "disciplined" by sudden capital movements??? Or is that what has just begun?

DAK