TC3013

Hedge Fund Deleveraging Could Be Half Over

The amount of cash on the sideline is meaningless. It does not matter if it is $1 billion or $200 billion. If that money goes into the market (buy) an equal amount comes out (sell). There will be the same amount of cash on the sidlines (more or less) after the "buying". Only the owners of the cash have changed.
Only the willingness of investors to bid up stocks move its price up.

This is one of the biggest myths out there that I hear all the time.