Go to the Amazon.com link below for TIMING THE MARKET by Deborah Weir (Wiley, 2005).
Email: DebWeir@WealthStrategies.bz
Take her class at the NY Institute of Finance: nyif.com/courses/fimk_1014.html.
Friday, April 06, 2007
The Fed's aggressive cash infusions are finally showing up in the money supply data. The stock market may respond well to the fact that preliminary estimates for M-1 and M-2 increased last week.
Do you view this increase in money supply (liquidity) as more bullish than usual because at the same time, the supply of stock available is being reduced through buybacks, buyouts and takeovers?
It feels to me as if the market is getting ready for another leg to the upside. (IMHO) Thanks for sharing your work. Jim P.
Also, wanted to mention. According to the Money Fund Report, published by iMoneyNet Inc. Money-market funds assets increased $10.68 billion last week, bringing total net assets to a record of $2.407 trillion.
And worth noting, "announced stock buybacks are running 17% ahead of last year’s pace, according to Birinyi Associates." The analysts say so far in 2007, $184.8 million in buybacks have been announced, compared with $158.4 million at the same time a year ago. Financial stocks account for more than one-third of the announced repurchases.
3 comments:
Hello Deborah,
Do you view this increase in money supply (liquidity) as more bullish than usual because at the same time, the supply of stock available is being reduced through buybacks, buyouts and takeovers?
It feels to me as if the market is getting ready for another leg to the upside. (IMHO) Thanks for sharing your work. Jim P.
Also, wanted to mention. According to the Money Fund Report, published by iMoneyNet Inc. Money-market funds assets increased $10.68 billion last week, bringing total net assets to a record of $2.407 trillion.
And worth noting, "announced stock buybacks are running 17% ahead of last year’s pace, according to Birinyi Associates." The analysts say so far in 2007, $184.8 million in buybacks have been announced, compared with $158.4 million at the same time a year ago. Financial stocks account for more than one-third of the announced repurchases.
Jim
Dear Jim,
Yes there is a lot of cash on the sidelines waiting to support the stock market. Not enough to normalize the yield curve...
Deb
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