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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 173.79-1.2%Dec 30 3:59 PM EST

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To: Clarksterh who wrote (8278)3/15/2000 6:36:00 PM
From: Jerome  Read Replies (1) of 10921
 
Clark, your answer was clearer than my statement. However, would not more of the new money have to be added to the larger cap stocks than the smaller cap stocks because they are now a larger percentage of the index.

You are right that old money can be left alone, but new money that comes in on a weekly basis will have to be re allocated. The problem becomes more complex because index funds are usually fully invested and redemptions have to be met by selling something. Over a period of just a few months the stock portfolios become out of alignment with the index they are tracking.

At any rate we will know by Friday at the close. It could also be a non event, as many predictions eventually quickly evaporate with the passage of time.

Jerome
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