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To: NucTrader who wrote (57821)11/19/1998 7:43:00 PM
From: donald sew  Read Replies (2) | Respond to of 58727
 
NucTrader,

>>>>>>>> Not according to CNBC last PM when they talked about money flows. They said there was $100 billion sitting in cash and money market funds, just waiting....... <<<<<<


I dont know who to believe. I hear over and over, OCEANS OF MONEY - 9500 BY END OF YEAR. I read on SI a few nights ago that in AUG/SEPT there was 1.25 Trillion. Now if there is only $100 Billion left, that means that it took 1.15 trillion to move the DOW 1500 points. Using simple mathematics, 100billion is 8% of 1.25trillion, so 1.25 trillion would bring the DOW up 1630 points or 100billion to move the DOW up another 130 points. Also keep in mind that stock are alot more expensive now than when the DOW was at 7500, so 100billion will move the DOW less now.

On the other hand, lets say that when the DOW was at 7500 there was 200 billion in cash. Well, thats an easy one - the market will zoom.

I dont know, nor am I saying the the 1.25 trillion figure in AUG/SEPT is correct. However to just say that 100billion is oceans of cash - could me a total misconception depending on current cash levels relative to cash levels when the DOW was at 7500.

Seeya