6 replies to this topic

[zedor]

MSNBC

[OEXCHAOS]

Why? Are institutional investors buying their gas with assets under managment? I see no correlation. M

[thespookyone]

Why?

Are institutional investors buying their gas with assets under managment?

I see no correlation.

M

Did institutional investors make a big move off the sidelines that I failed to see? Seems to me there is a LOT of money they have NOT put to work-and my question is-WHY? I realize one can speculate that it will be put to work=but I prefer reality of what "is" to speculation.

Edited by thespookyone, 07 May 2007 - 04:05 PM.

[OEXCHAOS]

The question is not "WHY?" We can't know that. The more important question is "When?" And that's the tricky one. They are under pressure to commit cash, however. They WILL commit it.

[thespookyone]

The question is not "WHY?" We can't know that.

The more important question is "When?"

And that's the tricky one. They are under pressure to commit cash, however.

They WILL commit it.

I feel that "why" is "when". I think we have a bit of a correction closing in fast, that is delaying the "when". Like yourself, I do feel they will put the money to work-and LOTS of it!, but I think that the bottom of the short term correction is their entry, and "why" they have waited. I don't think we have seen a long term top, and would be surprized if the bull did not run much harder, but not without a correction first.
Spooky

Edited by thespookyone, 07 May 2007 - 04:43 PM.

[zedor]

Why?
Are institutional investors buying their gas with assets under managment?

I see no correlation.
M

Where do you think institutions get their money to invest?

The question is who came first institutions or individuals.

By your question we obviously disagree and have a different point of view.

Gas prices are especially crucial to the US consumer and individual. Money spent on gas is money not spent on other consumer goods the only thing keeping the economy afloat.

Housing is a bust and its impact on GDP is going to ripple though.

Now gas has diverged from crude oil and keeps taking a bigger chunk of consumer's money.

Might not effect you but it effects a lot of people.,

Remember when gas was 1 buck - sure felt better than now at 3.50.

You call it a wall of worry I call it one of the many straws that will break this bull's back.

Edited by zedor, 08 May 2007 - 04:29 AM.

[OEXCHAOS]

Have you calculated the net effect decreased consumer spending (don't forget to remember that oil companies and gasoline sellers get a chunk of that money), vs. the effects of lower interest rates if the economy slows? Do you have studies of the effects of consumer spending on STOCK prices, vs. the Fed fund rate and the changes of such? I posit you believe that the "economy" (whatever that REALLY is) is closely correlated to the stock market. I assert that no useful correlation (for timers of any sort) exists. In fact, those who use such fundamental assertions of economic health or weakness as reasons for going long or short loose their heinies. The market discounts the economy. Unless you think you are smarter than the market is, then I'd ignore the economic news unless you think it'll meaningfully change the Fed's policies--the latter having more impact than anything really. The market leads the economy. Trade that and use IT to predict the economy, not the other way around. This is not snotty neener-neener "debate", either. It's the voice of 26 years of experience trying to save you a few bucks. M