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Technology Stocks : CISCO FOR TECHNICAL TRADERS
CSCO 79.36-1.1%3:26 PM EST
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To: Freeflight who wrote ()5/18/1999 4:54:00 AM
From: Freeflight   of 116
 
i don't think index fund administrators are buying a real portion of the firms in their index. note greenspan's approval comments two months ago of these new trading vehicles that have no real equity in anything...i.e. derivatives etc.

i just traced fidelity spartan market index fund; and they just turned it over to bankers trust to manage last month. if you research bankers trust they spot the monies to pay out from cash reserves. the money paid in reflects phatom equity % of actual stocks, but they don't actually buy that % in real terms. So what the hell do they do with the index monies paid in then?

i then checked the nasdaq site for the QQQ index stock. it is a real index stock like fidelity spartan, and the QQQ administrator in NYC does NOT buy the actual % of real company stock.

You know what this means! If financial instruments all go to hell in a handcart someone has to liquidate index fund money with no hard equity in anything but the funds which are at the disposal to the administrative bank to give loans to 3rd world countries or whatever else they really do with the monies.

Beware: there are disclaimers all over these index stocks which warn buyers that they don't represent equity in any real firms which make up the index and thus have no voting rights or bankruptcy claims etc.
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