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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (59829)	5/19/1999 8:58:00 PM
From: Tommaso	Respond to of 132070

Thanks--already saw it last week. Also the Trim Tabs data, which I think showed even more money. Yes, this explains the ability of the markets to hold up. Only a few percent shift either in preferences of mutual fund managers for cash or mutual fund holders to raise cash would multiply manyfold. There does not even have to be much actual buying or selling to cause an enormous drop in values. During one of the gas crises of the 1980s, Lincoln Continental automobiles became so cheap that I considered buying one just to sit in and listen to the radio when I wanted a little quiet.

To: Ilaine who wrote (59829)	5/20/1999 9:40:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 132070

AMG and Trim Tabs show outflows this week, which is an important (if perhaps very temporary) shift, given the ebullience of the last few months. Also, The Federal Reserve figures show firmness in the direction of restraint. Monetary aggregates on the order of 4% for M1, 5% or 6% for M2 and M3--versus 13% for the latter early this year. I don't know if you saw my earlier posts today about the acceleration in margin credit among brokerages reporting to the NYSE --in the last four months. Up 29% in those four months as opposed to a "normal" increase of about 7% in similar periods 92-97. All figures about breadth of the markets also show a morbid concentration in a few leaders. I haven't looked at A/D chart lines for the indices lately, but last time I did, it was a classic pre-bear pattern. Yet, as we must admit, nothing ever predicts changes or directions very accurately. As a whole, stocks have never been so overpriced in America. Although with our readily inflatable currency "overpriced" has truly entered a new era.