Richie

VIX Breaks Below 20

Boy, that didn't last long --- huh???

Fed Funds Rate Has To Climb To 6%, Then Fall

"• Buy into bond weakness. It is fair to say that on a one year view, Fed Funds will have peaked and will start their descent: Fed Funds rarely have "got stuck" at a high rate - at the outside, for about five months."
"• When Fed Funds fall, so do bond yields. That is because people want to lock into the higher rates provided by bonds, so they buy high yielding bonds, driving down their prices. So up go the yields."

What the heck are you talking about ??? What do L/T bonds have to do with Fed Funds. ie, Where is there a direct connection between the two ???

John Hussman: Avoid Being the Greatest Fool

Patrick ---

How then does declaring that M/F cash levels are at historically low levels have any value as a commentary? His argument is that liquid funds for investment are disappearing. Does it make sense to you not to mention that funds from all other sources are SEVEN times higher than at any other time in history?

John Hussman: Avoid Being the Greatest Fool

John,

You purposely mis-lead your readers by declaring that Mutual Fund cash levels are at all time low levels.

Why do you exclude the funds available to the hedge funds and wealth managers from your total of Mutual Fund cash levels? The point of the article you refer to is that there remains tons of money available to fuel this great bull market.

While it MAY be true that Mutual Fund (in the classical sense) cash is less than 4%, there is certainly ample liquidity from all sources to keep this rally going. Money, especially on a world wide basis, is everywhere.

Also, what do margin debt levels have to do with anything? You must be aware that never in history have high margin debt levels percipitated an economic or even a stock market decline. Check with Hulbert.