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Pastimes : Why are the OTC-BB stocks dying??

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To: Joe Copia who wrote (23)8/16/1998 1:09:00 PM
From: The Street  Read Replies (1) of 115
 
Maybe it has to do with the fact that as of 7/22:

* The Russell 200 was up 4.1% for 2Q >>> 19.1% gain for year
* The Russell 2000 was DOWN -4.7% for 2Q >>> 4.9% gain for the year

So, the OTC BB was even worse.

Why?

1. Mkt sentiment-- people want safety and liquidity for long term (Why liquidity if long term? Fund doublespeak.) when doubts linger.

2. Foreigners buy only Big Board-- they have flooded Dow, etc. and made for false rally.

* And keep in mind that Small Caps have returned 12.7% vs 11% since 1926. *

Basically, we are headed for deflationary economy. I am waiting for Commercial Real Estate to bust-- it leads business cycles. REIT's are already beginning to crash...
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