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Non-Tech : The Critical Investing Workshop

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To: SecularBull who wrote (6332)3/7/2000 6:06:00 PM
From: TigerPaw   of 35685
 
Index Funds.
I have been reading several posts around SI which indicate that XYZ stock will jump when it is added to this or that index fund. I maintain that index funds which are part of a family of funds do not have to buy on the open market, but can instead transfer shares between the funds.

On that theme, I am speculating that many good tech stocks went up while old economy stocks went down today because of index fund possibilities. Large blocks of EMC and GMST and other gorilla type organizations were bought on no real news (just vague interest rate news). I speculate that the families of funds are now making plays on their guesses of what will go into the new DOW and S&P500. The stocks that are included will then be available to be transfered (allowing the fund families to skip buying during the euphoric jump after an announcement).
TP
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