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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 689.510.0%Jan 8 4:00 PM EST
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To: HairBall who started this subject1/2/2001 9:05:43 PM
From: gfs_1999  Read Replies (2) of 99985
 
From James Cramer, nice article about Fund Managers

I can't believe how stupid some of the media can be. They come up with all of these shocked statements about why Intel and Microsoft and Ford and Motorola aren't down, but the winners are now down. Of course they are. Anybody who runs a fund knows that you don't sell at year-end to ruin your performance, but you do sell as soon as the year begins if you still have profits.

But nobody has profits in 2000 in Intel and Microsoft. So they don't get sold. Nobody has anything to lock in. I am not discouraged that the best of 2000 are collapsing now. That makes all of the sense in the world. Some of these stocks have been kept up for months by greedy managers who used every dollar they had to keep these balls in the air. These are the Buzz and Batch stocks that had to stay up for performance purposes.

Now that a new year has started these momentum managers do what they always do on the first day of the year. They blast out of a lot of the stuff they have kept up or they stop supporting that stuff. They have all quarter to make the gains back up elsewhere.

Do managers really play these silly games with your money? You bet they do. And they are darned good at it. It is one of the reasons why I was reluctant to send any of these momentum suckers more money when they crushed me. These charlatans will soon be exposed for what they are, shameless bull market promoters who will never be bailed out by the Fed.

Which, again, is why I am emphasizing blue-chips. I don't want to get in the way when these managers jettison the stuff they marked up and kept up throughout the last month of the quarter.

Random musings: I never revealed who Buzz and Batch are because they permeate many of the growth funds that started post-1995. That's where the most danger is: managers who got in this biz in the last five years. That's who I am scared of
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