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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: acementhead who wrote (49631)	5/5/2009 4:25:10 PM
From: Night Trader	Respond to of 219680

Yes I'm familiar with this argument - Hussman makes it all the time - but it ignores both net inflows and changes in market levels relative to a fixed amount of cash. If aggregate market participants have high cash levels relative to their assets but want to reduce them the only way this can be resolved is by asset prices rising. And the other way around too of course. The amount of cash hasn't changed just its proportion to the things it could buy. In any event this is how it works in practice: bigpicture.typepad.com