Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Benkea who wrote (18469)	6/24/1999 5:10:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 99985

Benkea; It was when it happened, and a few might trade on it but it's really history now. -------------------- Over all I see them on CNBC beating the drums about value stocks and how these over valued HUGE CAPS are the ones taking a beating and trying to get people to buy Value stocks..what a crock -- Well it may be a half truth, but the time for that rotation was when the bottom hit last OCT, trying it now is like standing in front of a train. ------ What happens is when the FunBdums try to window dress their portfolios, 1 they sell some of the big caps taking profits ( that sets up capital gains to the fund holders ) 2 they then buy lesser caps but find as every other fumbdum is doing almost the same like ducks in a row, the holdings they still have in the remaining big caps lose value , their nav goes down in spite of their window dressing. 3 People start wanting out of the funds, redemption's causes them to sell off more, until it gets to selling some of the new stuff as the market turns down toward the end the lesser caps always sell off the hardest, no matter their value it's the small float that drops them as some funds need to raise cash to let people out. 4 If it runs it full course then people going into funds from now to the end of the year might see very little gain, ( if any ) in the navs, but still have to pay cap gains tax at the end of the year. --------------- They (funds ) rotated at the wrong time, selling profit to buy value , but the value won't go up in a down market, as the cash to buy and hold enough of it is not there. When the BIG caps put in a bottom then buy , until then remember thinner traded stocks no matter how much value can get hammered down more until the tide turns. Often more than the more liquid ones.