4 Trillion

Where is the money?

Koslowski's shower curtain = $27,000
Koslowski's waste basket = $6,000
Koslowski's front door-knob = $3,500

Ebber's Ranch = $25 million
Ebber's Second Ranch = $10 million
Ebber's Autumn Home = $5 million

Sullivan's new mansion = $42 million


Now multiply all of this by thousands of other criminal execs, VP's and CEO's and you'll have a good account of where the money on the sidelines went.
 
Stock prices and Money have a direct relationship. More money spent means more demand chasing the same number of stocks, thus driving the prices higher.
 
Quote from Minime:

Stock prices and Money have a direct relationship. More money spent means more demand chasing the same number of stocks, thus driving the prices higher.
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Only if the money is really, really, dumb. Didn't we just go through that silliness?
 
Quote from stock777:



Only if the money is really, really, dumb. Didn't we just go through that silliness?
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I've learned that there are an awful lot of new people in the market who never went through all that. They haven't a clue.

--Db
 
Quote from triple_j:

I've been hearing about billions/trillions on the sidelines just waiting to be invested for a few years now. What is the authenticity of that number? trillions according to whom?

Personally I don't believe it. Kind of like the fudged government stats. It makes for a good discussion topic, though.

Don't get me wrong, 7. I do enjoy your posts and commentary, this one just pushes a button.

Maybe Surf can participate with some of his Wisdom.

triple
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triple,

thanks for the kind words. honestly, it matters little to me how much money is on the side lines ( whatever that means ) or where this supposed money is going to go. sorry, i don't have a more definitive opinion on this--- or did i just state a definative opinion ??

best,

surf:cool:
 
Let's not forget that foreign money is and have been getting out of the US market, and they're not coming back soon.

If Greenspan is suggesting to print a lot more money, then obviously the smart money doesn't want the same paper everybody else has. Dollar depreciation worsens US equity markets returns in EUR, CHF, GBP terms so this has been probably one of the reasons for the "unusual" year-end decline. Some of this foreign money has gone to gold, this might explain the slow breaking of resistance levels... 330, 340... 350 next?.
 
There is no doubt in my mind that there is a ton of cash on the sidelines. I think most all veterans realize this. That is not the question. The question is when will this money start to flow back into the market. Many people have been burned, (real bad).

In my opinion i don't think any crazy bull run will start for a long time. When new traders come into the market, that will help. Traders that never experienced the last 3 years of trading will have a more open mind. Many of the traders out there now are selling into rallies very quickly thinking that they will not last.

To try and guess when things will open up to how they were a few 3-5 years ago, is a real hard guess. It could take 5 or 10 years, but im hoping more like 2 or 3.
 
My guess is 5 years, reason is that many investors who got burned realize that there is no time for them to build another nest egg and they have to stay on sidelines to protect what is left. So, IMO it will take " new money " about 5 years to forget and dismiss recent experiences.
Walter
 
The comments so far are nice, but the question still remains:

Where are "investors" going to go with their money?"

Are the yields in securities really going to satisfy folks for the next several years?
 
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