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Technology Stocks : Intel Corporation (INTC)
INTC 40.01+1.7%Jan 6 3:59 PM EST

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To: Paul Engel who wrote (39273)11/7/1997 10:15:00 AM
From: mauser96   of 186894
 
Paul... Since most analysts are paid by stock brokers, it is to their self interest to move money from one stock to another because this means commission income to the broker.
We shouldn't blame a lot of the money managers for being very short term oriented, since they are judged on a quarterly basis in many cases, using the S&P 500 as a basis. Unlike private investors, they can't afford to think 5 years ahead . If I was in their shoes, and ahead of the averages at this time, I would protect my 1997 record by closet indexing and by reducing stock exposure somewhat. This is exactly what many of them are doing. Toward the end of 1997, they will reposition themselves as they start to worry about their 1998 record.
With the arrival of tools like Silicon Investor, the private investor is on a more even playing field with money managers and has the definate advantages of a longer term horizon and the fact that his trades aren't big enough to change the prices.
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