Monday, May 16, 2005

Companies buying companies

Newsday.com: Corporations Spot Investment Opportunities
For example, during the final days of the tech bubble, in the first quarter of 2000, individuals snapped up more than $100 billion in equity mutual funds; in July of 2002, in the midst of the bear market, they sold $50 billion in fund assets, and companies bought back shares. Biderman sees a similar pattern now.

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"There are a lot of fears and many of them are contradictory, so I have to believe that some of them are not well-founded," Yardeni said. "Not everything terrible can happen at the same time. It's very hard to get higher inflation and a recession."

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