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Technology Stocks : INPR - Inprise to Borland (BORL)

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To: TTOSBT who wrote (792)8/2/1998 2:11:00 PM
From: David W. Taylor  Read Replies (1) of 5102
 
Re: Market Correction... This is what is called the "lock-in-factor", which is described in a great little piece in today's SF Examiner.

His thesis is simple: the fund managers, who are up so far this year, need to appease their spouses by taking them on vacation. Before they leave they decide to sell some stock to lock in some of their gains. These sales are seen by others as "sell signals" and the lemmings rush for the cliffs to throw themselves over.

Come mid to late August the reverse will start to occur as the now weaker prices lure all the less successful managers into the same stocks in an attempt to outdo their vacationing competitors.

Check the history - this is a very believable scenario.
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