He points to alternative options, like bonds, which are yielding only about 3 percent.

At that price, the 30-year issue yielded about 8.59 percent.

Treasury bills paid around 5.45 percent, he said, while corporate paper yielded about 6 percent.

Half of that cash position is invested in British treasury bills yielding about 4.5 percent.

Late yesterday, the three-month Treasury bill was yielding about 3.04 percent.

Meanwhile, in the credit markets, the price of the 30-year Treasury issue rose a point, to yield about 8.8 percent.

Con Ed, for example, now yields about 7 percent.

Short-term funds, with maturities of no more than two years, are yielding about 5 percent.

Rates held firm yesterday, and bonds yielding about 9 percent lured money away from stocks.

"The market finally realized that there is no need to buy stocks when you can get a two-year note yielding about 9 percent," he added.