Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Pancho Villa who wrote (5661)	3/27/1998 7:44:00 PM
From: Market Tracker	Read Replies (1) \| Respond to of 18691

Thank you for all your thoughtfully-worded and insightful posts. This brief clip from briefing.com pretty much sums up the daytraders work ethic in the late '90's. "When asked by acquaintances what he does for a living, one reader says he responds, "I hit reload."" Hope everyone's weather is as fine as ours (CT). Have a good weekend. MT

To: Pancho Villa who wrote (5661)	3/28/1998 11:13:00 PM
From: Tom Hua	Read Replies (1) \| Respond to of 18691

Actually, you cannot do the math this way. Your calculation assumes that the previous month's consumer spending and personal income are fairly close They are indeed. See the following for more info. The Commerce Department said Americans' personal income increased a strong 0.6% in February for the second consecutive month. The gain, to a seasonally adjusted annual rate of $7.14 trillion, outpaced the healthy 0.4% advance in consumer spending to $5.66 trillion. If I remember correctly, about 40% of the nation tax receipts derive from personal income tax, or about $600 B. (Pancho, you're the expert here, please correct me if I'm way off base). This puts the savings rate at $880 B/year. Assume people put half of their savings in the market, that's a whopping $36 B/month. Add another $5 B/month from 401 k, you're looking at a net inflow of $2 B/day!!. Regards, Tom