Donald, some commentary confirming your sector rotation view:
A Rally of Real Buying
By James J. Cramer
10/28/99 10:56 AM ET
The rally you are seeing is real buying. It looks like some of the bigger mutual fund families are scaling back out of tech and putting that money to work in the financials and, to a lesser extent, the drugs. I think you will find that when the mutual funds report their end-of-the-year positions, you are going to see names such as Chase (CMB:NYSE) and J.P. Morgan (JPM:NYSE) added, and names such as Microsoft (MSFT:Nasdaq) and Cisco (CSCO:Nasdaq) diminished.
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This is a huge shift, and given the size of the pools of capital we are talking about, it can't end right here. These behemoths, when they switch direction, tend to take things well beyond where you think they should go.
I am not long Chase (I stipulate I am a moron for that), but if Chase got a market multiple it would go to 120. That means these funds haven't even started yet.
For me, I keep waiting for a moment to get in. It is always like that. I won't be given that moment. I will have to pay up in the end. Same with Wells Fargo (WFC:NYSE), another that has attracted massive interest. At least I have the J.P. Morgan.
At home, we play with dinosaurs. When they move around, even the replicas, they knock a lot of things over to get where they are going to go.
So do funds.
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