I get tired of hearing of all the cash on the sidelines. Correct me if I am wrong, but if you sell a stock doesn’t there have to be a buyer on the other side that is taking cash off of the sideline?
dividends, distributions, etc…
Technically, if there is the same volume going up as there is going down, the same amount of money exists right? So that means that there is 50% extra cash sitting around waiting to be re-injected into the market… should it not be all from leverage which no longer exists :S I think thats the factor that most people don’t realize, leverage is probably like 95% of that 50%… although there is new leverage for the winners so its this big conundrum. But I do agree that there is “cash” on the side, isn’t there always cash on the side… once there isn’t cash on the side, there’s no reason to hold onto the stock because it will no longer be purchased.