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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Lachesis Atropos who wrote (17802)	9/25/1998 12:02:00 AM
From: Clint E.	Respond to of 70846

>>>I poll colleagues with questions like "How much of a drop on your returns would you endure." Surprisingly, they are adamant that they will ride it out. Money market funds are unthinkable to them. I've had similar experience with my acquaintances. Some even mention the rule of 125, saying that they are in it for the long haul and too far away from retirement to worry about it. Only a few who are >40 have moved some money into money-market funds. One positive factor out of this market volatility is that more people are interested and knowledgeable about stocks nowadays. They are also becoming thick-skinned and are no longer surprised about day-day gyrations. On a separate note, until yesterday I was thinking that we will not see a cut next Tues. I changed my mind tonight after reading the full article on Long-Term Capital Management bail out. After reading this article and noticing hands-on involvement of the Federal Reserve Bank of New York who WAS ONE OF THE MEMBERS PUSHING FOR RAISING RATES in the past, I am certain that the Feds will lower Fed Funds rate by at least 1/4% on Tuesday. I cannot imagine such major financial institutions sinking "more bad money after good money" if they didn't have the Federal Reserve on their side. The fact that this report was SO DETAILED and was published AHEAD OF next Tues. Meeting should tell us that WS is putting all pressure possible on AG to move next week. The whole story was leaked by the members of that group for a specific reason. Based on that belief, I will be buying any strong stock that is down before then. I am also thinking of buying some near-out-of-money calls in the financial stocks. Clint