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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (5088)	5/21/1998 9:15:00 PM
From: Investor2	Read Replies (2) \| Respond to of 42834

Re: Samuelson said, ''Since the summer of 1996, my judgment has been that the Fed should tighten up a little. I told Greenspan what should be done,'' I think the great economy over the past two years have proven that Mr. Samuelson was in error and Mr. Greenspan was correct. Best wishes, I2

To: MrGreenJeans who wrote (5088)	5/21/1998 10:21:00 PM
From: wooden ships	Read Replies (1) \| Respond to of 42834

In re: <>"It's not really a healthy thing for a large number of stock owners to believe they'll average 30-percent returns on their securities for the next three years ... as they did in the past three years," Samuelson said. He added that raising margin requirements for stock ownership may be a good idea. "Greenspan did not want to do this because he believes that things have unintended consequences,'' Samuelson said. "He's afraid that if he raised margin requirements, this could kick back in the opposite direction (bolstering investor confidence)." [italics mine]<> Brinker has more than once advocated that Greenspan should raise margin requirements from the current 50 per centum on eligible equities if he(Greenspan) believes the stock markets are flooded with "irrational exuberance." Brinker seemed at a loss to explain why the Fed chairman should not avail himself to this particular option within his arsenal as a sensible means of cooling specula- tive fervor among traders whilst not damaging the economy in the main. Samuelson appears to provide a direct insight into the intriguing rationale why Brinker's suggestion to Greenspan goes unheeded. If I understand this correctly, Dr. Greenspan seems to fear that raising margin rates will send a perverse message to investors that, baseless speculative fervor having been wrung from the market with a healthy margin rate increase, stock buying and ownership would then be thought to carry even less odor of risk. Mr. Green Jeans, thanks again for a very insightful and useful cross reference.

To: MrGreenJeans who wrote (5088)	5/23/1998 11:31:00 AM
From: MrGreenJeans	Read Replies (7) \| Respond to of 42834

Fullly Invested, Partially Invested or Out of the Market? Taking a survey on how many people on this board are: 1. Fully invested-think there is a great deal more or more upside to go 2. Partially invested-taking money off the table, taking profits, because the market is priced to perfection-being cautious 3. Out of the Market-getting a nosebleed, waiting for the market to tank, have speed dial on their phone set to call their brokers in order to short spiders Please explain why...