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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?


To: TRIIBoy who wrote (4887)11/16/1999 12:29:00 AM
From: Bill Wexler  Read Replies (2) | Respond to of 10293
 
The same thought has crossed my mind. When the market gets toppy, money starts to flow back into small caps and event the lowest quality stocks benefit.

But I don't think this is the case this time. I think that instead, a lot of money managers are hedging by increasing short positions in certain small caps. I say this because there has been a rash of buy-ins lately...so it's more of a supply and demand issue.

For the long-term investor, this will not be much of a problem (assuming that you allocate correctly and don't overdo it on margin). In the short term, it will cause these spikes that you are seeing.



To: TRIIBoy who wrote (4887)11/16/1999 8:45:00 AM
From: TRIIBoy  Respond to of 10293
 
Is there a longer term danger in that more and more money managers move to a strategy of holding larger cap companies and shorting crappy companies?

Does this crowd us out or make shorting these companies more dangerous?