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Politics : High Tolerance Plasticity
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To: energyplay who wrote (7559)9/7/2001 7:54:05 PM
From: energyplay  Read Replies (1) of 23153
 
Cramer on Mutual Fund redemptions -

There's a Lot of Roadkill on the Street Today

By James J. Cramer

09/07/2001 03:21 PM EDT

You can't game redemptions. You have to let them
run their course. I know this as if it is hardwired on to
my cerebellum. I know it as no one else knows it
because I have spent my life studying it.

Right now, several large mutual fund houses are seeing massive redemptions. They
are bailing out of anything that is nailed down. To try to predict when they will be
done selling is foolhardy. Only they know.

Whenever I was faced with this kind of redemption selling (last time was the
second week of April), I went to maximum cash because, while I fear almost
nothing, I truly fear irrational sellers who don't know what the heck they are doing
and have never traded in hard times and have no idea how to sell.

Can the market bounce? Sure. But after the bounce, we will get more selling
because the redemptions have just begun. Let this market get real oversold. Let
this market drop to levels where the companies have to buy back stocks, where
the sellers are exhausted and finished. We obviously aren't there yet.

I know this is not a pretty picture, but, at this moment, the market is out of the
hands of investors who have any control of themselves and into the hands of
investors fighting for their financial lives. Let them crash and burn without our help.
We will feast on the wreckage.
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