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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: James F. Hopkins who wrote (20252)6/13/1998 12:44:00 AM
From: Bonnie Bear  Read Replies (5) | Respond to of 94695
 
Ahem..(cough, cough) the pattern divined by the Oracle of Schwab, shows an interest-rate bottom somewhere around the 15th of most months, coinciding with the money-market dividend payout. The minima of the interest rate minimizes the payout required to the investor. Stock prices move up for a few days after this on most months,perhaps to reinvest dividends into stocks at much higher prices a few days later...I wish I knew more about cash flow inside a brokerage, I'm quite sure that the money flows are carefully orchestrated to maximize profitability to the fund houses and brokerages.
The carnage in the Nasdaq must have wiped out tens of thousands of tech jobs, and chopped three support and service-sector jobs for every engineer job. Real unemployment should start going up and should hit the cash flow into mutual funds soon IMHO. A friend here in Silly Valley that took a voluntary layoff was shocked to find that the state outplacement services were booked up for the next month. She asked the counselor, "why are you booked up if the job market is so great"? She was told, "you can't believe everything you hear".
Every time we go out to dinner there are more vacant offices, vacant bank buildings, vacant store fronts. At the same time there is new construction going on. Friends at work report that everybody in their neighborhoods have decided that it's a great time to sell their houses, and there's sale signs in most of the driveways. Hmmm.....