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Strategies & Market Trends : Waiting for the big Kahuna

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To: James F. Hopkins who wrote (23861)8/11/1998 7:46:00 AM
From: Moominoid  Read Replies (1) of 94695
 
we got to do a Moon shot with the small caps

As I understand from history and the recent behavior of the Aussie market small caps die first as institutional investors move to liquidity of big caps in order to dump fast in the crash.

In Aus the "small ordinaries" index is down 15% over the last year. The "all ordinaries" which includes big caps too is about level. Microcaps as represented by First State's Developing Companies Fund (which I quit before things were as bad as this) are down 25%. The same thing is happening in the US in the Russell Index going first.

By the way, right now the SPX futures is 1072.50 down 16 from the close on the SPX. I bought my index put warrants. The decline here is unlikely to be so strong here however, as plenty of stocks are already paying 6 or 7% dividend yields.

David
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