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Strategies & Market Trends : WILL COCA-COLA ALWAYS GO UP?
KO 71.54-0.2%Nov 12 3:59 PM EST

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To: John O'Neill who wrote (1189)8/1/1998 2:03:00 PM
From: dowman   of 1462
 
By definition an index found should be 100% invested at all times. Thus real selling would take place at a point in time where inflows are less than outflows in theory. However, there are stories about index funds using leverage to meet redemptions, using margin rather than selling. This sounds good in a bull, but could be real nasty in a bear.
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