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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: W.F. Schwertley who wrote (9681)	1/19/2000 12:11:00 AM
From: Archie Meeties	Respond to of 78702

"Could someone tell me what would happen to a mutual value fund, such as "Fidelity Value", if the bubble burst on technology stocks?" If the market corrects rapidly, this fund will get taken down right along with RHAT and kin. Why? Because in a major correction, the fund houses must cross fund lines just to maintain liquidity. We all agree that once the dust settles, there will be a rotation into "value", and the value funds will hold if not rise. But if the market corrects slowly, value funds won't get washed with the rest of the market, and you might benefit from rotation without the collateral damage from the tech bubble. Here's a question for the thread. Does the speculative bubble break first - then rotation, or is it the other way around?