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To: Lee Lichterman III who wrote (57773)	11/18/1998 11:33:00 PM
From: Gersh Avery	Read Replies (2) \| Respond to of 58727

Hi Lee For the Fed to hit its lowered target it has to throw cash at the banks until they have had their fill. Until that target is hit the fed has to keep running the presses. All of that new money will be looking for a new home. Generally, the first stop for such cash has been the market. Now there is a huge pile of cash that has been building up in money market accounts. This pile of cash is mostly from the 401k folks that 1-pulled cash out of the market when it was down and 2-switched contribution flow direction from stocks to "on hold". When the 401k folks see that the market is going up from the fresh flow of fed cash, some percentage will 1-return cash to stocks and 2-redirect new contributions from money market accounts to stocks. This is a feedback situation. As the market goes up more the more of this cash on the side will go back into the market etc... At the end of December phase II of the Japanese big bang will go into effect. That will be the first time that the small guy will be able to invest outside Japan. Last survey that I saw showed that ~30% of current Japanese retirement funds will relocate to the US.. The liquidity picture looks pretty good right now.. Gersh

To: Lee Lichterman III who wrote (57773)	11/19/1998 7:09:00 AM
From: donald sew	Read Replies (2) \| Respond to of 58727

Lee, >>>>>>>> I think as long as the world markets are holding we can try to pass our prior peak to appease the TA gods higher highs etc). <<<<< Thats a fair statement; however the major overseas markets (BRITAIN,FRANCE,GERMANY,JAPAN), on a technical basis, really dont look that strong. They(except JAPAN) have only rebounded about 50% off of their lows, so it still can qualify as a bear market rally, if it does not go substantially higher. They are also in the process of forming either a LOWER HIGH or a MINI-DOUBLE TOP. Seeya