Replies to post #371764 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Newly, careful there, there has been positive inflow of cash in the market for months now. The cash on the balance sheet of many corporations is at a record high, some of it will come out to do acquisitions, some of it to repurchase shares, some of it in increased dividends and some of it in new capex. The first three activities are all going to add to cash flowing into the market.. Furthermore, the growth of the workforce, will also increase the 401k type distributions, another source of funds for the market. What will, IMTO, precipitate the resumption of the secular bear, will be most likely economically driven, and right now, most probably by reduction in aggregate end demand due to tapping out of the consumer. However, as I have mentioned late last year, as long as employment increases at around 200,000 new jobs or so per month, such tapping out, is probably not imminent.

[Gizmo]

You have it right Newly...Mutual funds are probably only covering redemptions with new inflows. most not staying in U.S.

Equity funds report net cash inflows totaling $1.974 billion in the week ended 3/16/05 with Non-domestic funds reporting 84% of the inflows ($1.656 Bil);

Equity funds report net cash inflows totaling $2.959 billion in the week ended 3/9/05 with Non-domestic funds reporting 80% of the Inflows ($2.367 Bil);

Equity funds report net cash inflows totaling $2.842 billion in the week ended 3/2/05 with Non-domestic funds reporting 92% of the inflows ($2.606 Bil); http://www.amgdata.com/

[ogm]

Exactly. Not only J6P doesn't have any savings to invest, there is a huge demographics shift looming. Baby boomers shifting into retirement and conservative spending mode, and there is less 40-45 year olds in the currnet generation ( statisticaly considered the main age group for peak earnings and investments ).

Cash levels at mutual funds are very low too. Meaning they are mostly invested already. Last few weeks of funds inflows are very weak too.