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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (4334)	3/6/1998 11:21:00 PM
From: Pancho Villa	Respond to of 18691

>Pancho, somewhere in those equations, one must include a parameter to account for the $5 billion/month of 401k money that goes into the market. < You are right but when people finally realize that there are better return opportunities they will pull the money out. Finding the next sucker that buys at a higher price can only carry you so far. People forget that the financial markets are here to provide liquidity you can have your $$$ today (sell a share) or in the future (buy a share and get the cash flows) but if people perceive the cash flows may not be as expected they will pull out. pancho PS: this was only an rough model that may explain how revision in eraning expectations from 8% to 6% growth can have a significant effect in the market.