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Strategies & Market Trends : Value Investing

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To: James F. Hopkins who wrote (1634)8/10/1997 9:21:00 PM
From: James Clarke   of 78778
 
James, nice post, but I question your premise. If there were a big drop, HOW are the mutual funds going to be able to pick up all the bargains? With what? They are all 95% or more invested now. They would have to sell other stocks at depressed levels. This is the dirty little secret right now. There is no "dry powder" - i.e. cash since everybody is either bullish or scared not to act like they are. I think you're kidding yourself if you think a 30% correction is a remote possibility.

When you least expect it, expect it. That is what financial history shows.
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