What cash? Oh, from those who bought into buy-n-hope baloney and got burned in 2000-2002 then in 2008? Yeah, keep waiting for them to come back in. And waiting... That cash on the sidelines has been there for a long time and will likely remain there...or in gold, treasuries or something else.
Market outflows in 2008 and 2009 were massive - it would be ignorant to think that a large percentage of that money would not come back at some point. Inflows since early 08 show it's still not in. I'm not arguing this point: it will happen. It's your right to think otherwise. Feel free to go massively short right now, I'm happy for more liquidity.
You still believe in that conspiracy theory. No such thing as "CASH ON THE SIDELINES"...... I have heard that line for many years, especially after the market peaked and started to collapse, they always use that worthless line when the markets get weak and try to convince everyone to jump in. ITS A CONSPIRACY THEORY!!!!
Why is it a "conspiracy theory" ? When the market crashed the outflows were quantifiable. Based on the dearth of economic activity, the money is obviously idle somewhere, and the increase in M1 confirmed it. The only thing I believe are the numbers I see and can verify.
How do you know it will come back? Were the late 1990s through mid-2000s levels of stock ownership by the general public (i.e., off-the-charts) the norm? Or were they an anomaly with most investors wising up after the last 10 years? Most analysts and wishful bulls quit toting the "cash on the sidelines" stuff about a year ago. But for the true believers, maybe it will come back... along with the 8-track and disco.
What is "it" ? The money? I don't speak in absolutes. It's unlikely all of it will but there will be new equity to replace it in the system; my models are showing the majority will. Just like the markets themselves, the Public's interest in equity markets ebbs-and-flows. I don't see the same peak being reached as during the 90s-2001 stretch, but it will go decidedly higher than today. Eventually the markets will exceed their all-time-highs, but I don't see that in the next 2-3 years. Analyst opinions are like assholes: everybody has one. I stopped listening to analysts when I realized how obtuse their "predictions" are. Ask one to take responsibility for a bad call or give you a time-frame for a call and see how they dance. Analysts deal in "sorta-kinda-maybe-iff" - I deal in quantifiable data that I can verify numerous ways, or else it doesn't make it into the models. Supposition is for suckers.
i understand the desire to celebrate but just because we closed down a couple of points after a 100 or so point run up doesnt really cut the mustard for a 1000 call.
Hey I was just be sarcastic--that is allowed here isn't it? Obviously so far this thread not looking so great.