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To: Joe Antol who wrote (5534)	2/13/1998 7:24:00 AM
From: Bipin Prasad	Read Replies (1) \| Respond to of 19079

all, These are from today's wsj: 1. ...... Bonds rose in early trading even as a drop in Asian markets, especially Indonesia, depressed stock prices. But both bonds and stocks reversed course early in the afternoon on what traders said was positive response to testimony by Federal Reserve Chairman Alan Greenspan on Asia and a burst of computer-guided program buying. The fact that stocks spiked higher and bonds spiked lower almost simultaneously indicated one or more big investors may have been executing a so-called tactical asset-allocation shift. "There is a lot of cash around, so these little sell-offs create buying opportunities and they go after them," says Tim Grazioso, manager of Nasdaq trading at Cantor Fitzgerald. ...... 2. Another sign for "a lot of cash around to push little sell-offs creat buying opprtunities." Mutual Funds Investors Are Shoveling Cash Into Stock Mutual-Funds By PUI-WING TAM Staff Reporter of THE WALL STREET JOURNAL ...... "The numbers are pretty dramatic," says Greg Gable, a spokesman for discount broker Charles Schwab Corp. "It must be El Nino, because the floodgates have opened up." So far this month, $604 million has poured into San Francisco-based Schwab's U.S. stock funds, up from the $428 million that went in during the same period in January. The increased stock-fund cash flow so far in February comes after an apparent pickup in sales last month. An estimated $18.5 billion in net new money flowed into stock funds in January, according to the latest estimates released Thursday by the Investment Company Institute, a trade group, up from the actual $16.8 billion that was collected in December. ...... Several fund analysts are worried that the continued cash cascade into stock funds -- and the apparent slackening of interest in bond funds and other conservative investments -- reflect an imprudence on the part of many investors. Investors who keep pouring money into stock funds are likely to become increasingly overexposed and vulnerable to stock-market gyrations, they note. And given how long the bull run has gone on already, the betting in some quarters is that a downturn in the market may happen sooner rather than later. "We always worry that people's expectations are too high," says Steve Norwitz, vice president at T. Rowe Price Associates in Baltimore. "We're cautioning people once again" against expecting the market to keep setting record highs. But Mr. Norwitz also adds that investors may appear unconcerned about dumping so much money into stock funds because they're socking their money away for the long term. That will enable them to ride out the dips. "A lot of this money that's coming in is for retirement," he says. "People know they're in this for the long run." So far this month, flows into T. Rowe Price's domestic stock funds have already reached 75% of January's amount, he says. ...... Very interesting one to read. regards, BPP(Bipin's partner)