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Pastimes : Ask Mohan about the Market

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To: Simon who wrote (13673)1/31/1998 11:06:00 AM
From: Bonnie Bear  Read Replies (1) of 18056
 
simon: 20% of the volatility in the market is index-based arbitrage from a few of the brokerages with the hi-tech smarts. The companies that do it sold off and are selling at 1990 valuations right now because everyone is terrified the market will go down. I'm buying, I want a piece of this business, heck let the computers do the work while I go to the beach, thank you :-) For most every trade you make some of that money goes to JEF and DLJ. They make money on volatility.
I certainly feel safer than buying into a high school dropout's box sale company -ggg-
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