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>>I don't believe it. <<

I believe anything... remember the philosophy here is long term buy and hold...

>>After this weeks trading on the Nasdaq & Australian specs and no-one says anything.<<

The inverted yield curve on Friday last week meant that at 3.45pm I phoned my broker and bailed on everything at market. If the Fed's are continuing this tightening bias with a 0.25% further increase than I see a lot of storm clouds on the horizon.

Also I see the recent action overseas as stupid!

>>Read an interesting piece that insinuated that the Nasdaq (after its 600 pt fall in a couple of hours) was propped up by the American Govt. through Merril Lynch and (forget the other one) , obviously to prevent further freefall, mass panic & losses and all associated ills.<<

I read that then discounted it, as the US Mutual Funds were all holding on average 15% of reserves in cash (one had 48%). Now these are BIG funds and when they buy, they buy big. The buying would be more attributed to them taking up good valued income stocks. Tech's which rely on capital growth will be given the flick shortly as the inverted yield curve indicates troubled times ahead and the majority of investors will be heading for blue chip income stocks.

>>In case anyone is interested, my bag of techs & specs lost about 30% from thursday to wednesday dinner time and have regained about 27% back since then. Mind you helped out by a bit of good bottom fishing with the 20% I had in cash.<<

If you do not retain a portion in cash to average down then you would have hurt a lot more. Notice gold stocks did extremely well? ... no ...
Oh well one more diversified investent call fell on deaf ears. I think future IPO's will be very cautious in future.
Beware the dead cat bounce though! It may froth and gurgle along yet the implications are that the market is touchy and investor confidence is not all that high anymore!

Remember sentiment in markets can change in an instant. When it ropes in all surplus cash a 'de-wealth' effect can be created by a market crash.

Maybe Greenspan wishes this to be the case for the short term.... who knows!
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