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.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (161)	5/7/1998 10:33:00 PM
From: Teddy	Read Replies (2) \| Respond to of 14427

RE: "... quality gold co's at bargain basement prices." There are no "quality gold co's," they are will all go out of business during my life time. It is almost the year 2000: there is no "gold standard" any more. Just an other commodity. Supply is greater than demand = price will continue to fall. If you think these are "bargain basement prices," what will you call the stock prices when they drop another 50% in six months? Teddy's suggestion: going out of business sale. Oh, and did i mention that The Fed is not going to raise interest rates or margin requirements any time soon? No reason why they should. Too bad for those poor souls that are betting on a bear. "...The Washingtonian effort feels almost coordinated. From Clinton's press conference through interviews with Rubin and Rivlin, it's clear that the administration is staying on message -- the message being to talk the stock market back from what it sees as a speculative ledge. But, at the same time, it's clear that neither Clinton nor Greenspan is eager to raise interest rates. That puts the Washington talkers into a sort of rhetorical pickle. They are going to say for the next few weeks: Yo! The stock market's too darn high, get it back down here! But they won't do anything fundamental to force that to happen. In a Through the Looking Glass kind of thinking, they are doing exactly what the derided market enthusiasts have been: talking a lot of hot air about things yet to come, but showing little in the way of fundamentals that would get it done. It's a tricky game, but the politicos are determined. Ultimately, the D.C. crowd will believe that they have succeeded in cooling the market's heels for a little while. But it will be more a coincidence than anything else. Market sage Abby Joseph Cohen of Goldman Sachs recently wrote that the stock market was sticking with its staircase pattern, having just reached a landing. Cohen argues that stock prices, after racing ahead in the past few months, will now settle in until earnings projections start to catch up with trading levels. That could mean some volatility going forward, but the absolute movement in stock prices might not be all that overwhelming. With the U.S. government talking the stock market lower, what kind of danger is out there? It's easy to see how some of the steam could come out of the bull, but it's much tougher to see how stock prices could go sharply lower in a sustained move. For one, dollars continue to pour into mutual funds. Also, with interest rates and inflation remaining nonfactors, there's little alternative for investor cash. Moreover, about $1 trillion rests in short-term money market funds. Clearly, somebody's sitting on some cash. We'd have to burn through some of that before we'd enter a true decline phase." And here's a must read from a member of The Fed: biz.yahoo.com