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bullish sign? Investors keep piling up cash: Money market mutual fund assets rose $120 billion in the seven days ended Tues. Total money fund assets now a record $4.39 trillion, up from $3.50 trillion at the start of the year. (iMoneyNet)
Another maybe bullish sign... This article from the NYT says it's institutional investors (aka smart money) driving this one while Mom and Pop investors (like me) wait it out.
Another maybe bullish sign... This article from the NYT says it's institutional investors (aka smart money) driving this one while Mom and Pop investors (like me) wait it out.
I have also read that some of the buying has been driven by funds with a mandate to own the constituents of various indexes.
OTOH. From your link:
Cole Smead, a portfolio manager at the Smead Value Fund, has been snapping up bargains in beaten-up parts of the market, like oil and energy producers, homebuilders and shopping-mall companies, that are closely tied to short-term swings in the economy.
I won't be adding Smead Value to my shopping list. I regularly drive by one of the largest ghost town malls in the country.
Goldman Sachs economists, for example, expect the gross domestic product to contract at an astounding 34 percent annual rate in the second quarter, with unemployment reaching roughly 15 percent.
I look at numbers like that on top of the burden of corporate leverage, and I wonder what could happen if their debt is down graded.
And don’t underestimate the fear of missing out. As shares rise, professional money managers feel pressure to buy stocks to protect their reputations.
“If you wait until the coast is clear, you will have missed a huge part of the gains,” said Matt Maley, chief market strategist at Miller Tabak, a trading and asset management firm. “And professional investors can’t afford to do that.”
That doesn't sound like the sort of discipline Old_Skeet describes as his process.
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OTOH. From your link: I won't be adding Smead Value to my shopping list. I regularly drive by one of the largest ghost town malls in the country. I look at numbers like that on top of the burden of corporate leverage, and I wonder what could happen if their debt is down graded. That doesn't sound like the sort of discipline Old_Skeet describes as his process.
Thanks for the link.
Derf