NW: Here's a few things that don't makes sense to me ...
Window-Dressing
Computer and Internet companies are gaining as money
managers who are lagging their benchmarks plow into winning
stocks. This ''window-dressing'' aims to fool clients, so when
they look at year-end statements they believe their money manager
or mutual fund manager is in the know.
I don't think investors are that stupid. If owned a fund that's telling me it owns YHOO, AOL, EBAY, etc. I guess I might wonder why it's only up 3%. DUH!!!!
Many professionals, particularly lagging managers, are
reluctant to sell their winners before the year's out. That way
they can delay hefty capital gains taxes until 1999.
If they're "lagging" managers, they obviously don't have a lot of "winners".
Personally, I think the internet stocks are here to stay. They'll probably have a correction some time in the first quarter that will appear to be dramatic, but no more dramatic than their rise. They don't act any different technically than any other stocks - it's just that the moves are so huge. It's more difficult to see with the new issues because they don't have a technical "track record" yet, but if you look at a chart of AOL or YHOO, it's the same old base and breakout scenario - it's just that the base may be a 20 point swing instead of 2-3 points. <gggg>
JMO
K
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