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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (5447)	12/16/1997 9:48:00 PM
From: Big Dog	Respond to of 95453

Glen, Anyone can read this thread and likely get more insight than from that "report" for $5. I can promise the report won't say anything we don't already know. Here is some interesting mkt info from The Cabot Market Letter of 12/12. ...there are thousands of institutional money managers who are receiving literally millions of dollars every month. It can't sit on the sidelines. And so these managers are continually asking themselves, "Where are my invested funds going to be treated best?" Remember, money always goes where it is treated best. When interest rates climb significantly, money tends to leave the stock market and go into bonds where there are higher yeilds and less risk. BUt when interest rates tumble, as they are currently doing, the attraction of bonds drops markedly and money flows back to the stock market where there is more opportunity. ...do you realize that the bond markets (all govt, muni and corp lumped together) are roughly 6 to 7 times larger than all the stock markets combined? It's true. When you compare the size of the stock market to the size of the bond market you can appreciate how a minor drop in interest rates of bonds results in a great deal of money flowing out of the larger bond market and into the much smaller stock market. This is why the stock market is so sensitive to changes in interest rates. You may not realize that it's happening, but during this current market weakness, gigantic amounts of money are flowing into the stock market and away from bonds every day. And this flow becomes more intense once the stock market starts moving ahead again. WHAT TO DO: Remain fully invested. The stock market will continue to do the unexpected. It will dart and weave and feint this way and that way, keeping the majority of investors off balance. But you should ignore all the minor fluctuations. Look only at the main trend and stay with the main trend. Today it is definitely bullish. end of report Here is what is on our side right now, IMO: 1. The fundamentals for the oil service sector are stronger than ever and getting stronger every day. 2. Interest rates are sinking to historical levels. 3. Inflation is low indicating companies do not have pricing power -- but we do. 4. Inflow of money to mutual funds continues unabated and will sharply increase after fund distributions and after the first of the year contributions are made. Mutual fund inflows will accelerate as the market moves higher. This money must be spent as mentioned above. Unless Clintons dog is named Buddy we are in great shape. Thos last 15 minutes today really pumped me. I have never seen anything so exciting. It was like magic. What is it that can turn a market on a dime like that? Can one fund generate that level of buying? It's amazing that it can happen SO fast to so many stocks in the single sector. I look forward to waking up in the morning -- we have Asia up strongly. The US markets are looking strong, the oil service sector had tremendous momentum...everything that we could ask for is in place. Let's just don't let Glen buy anything and spoil it. :)