The Adverse Effect Of Window Dressing
SAN FRANCISCO, CA, Mar 26, 2002 (INTERNET WIRE via COMTEX) -- Stock Traders has established that BEA Systems, Inc. (Nasdaq: BEAS chart, msgs), McDATA Corporation (Nasdaq: MCDTA chart, msgs), NVIDIA Corporation (Nasdaq: NVDA chart, msgs), Genesis Microchip Inc. (Nasdaq: GNSS chart, msgs) may be adversely effected by Window Dressing.
Thomas Kee, Chief Investment Strategist with Stock Traders Daily, defines Window Dressing as an event that takes place at the end of each quarter. "Mutual Funds adjust their portfolios at the end of each quarter so that the best performing stocks in the Market stand out in their quarterly report to shareholders."
The quarterly performance of a Mutual Fund, therefore, may not reflect the actual performance of the stocks listed in the quarterly report to shareholders.
Experienced Traders use the 'Window Dressing Effect' as a tool for making short term trading decisions. According to Mr. Kee, Experienced Traders anticipate the decisions Institutions will make at the end of each quarter.
Ron Dior |
