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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 157.80+0.9%Jan 22 3:59 PM EST

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To: Art Bechhoefer who wrote (113138)2/13/2002 9:32:53 AM
From: Jordan Levitt  Read Replies (2) of 152472
 
Art,

<<So, even though skills enable one to do better than the market for awhile, it is only a matter of time until the rest of the market players find out, and market inefficiency evaporates. >>

This thought would seem to be particularly true about quantitative models and particular TA measures. One area where returns seem to act differently is in small cap value. My own theory as to why, is that it is the hardest area to invest in, in that to find good small companies requires a great deal of work, and few are willing to do that sort of diligence. I think it is also due to the limitations (in terms of size) that the large funds and institutions face. These small and micro cap companies can't have the efficiency thrust upon their share price as quickly as the larger issues as most of the "big money" cannot buy these issues. Further, small companies are not as easily constrained by the law of large numbers.

Jordan
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