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Strategies & Market Trends : TIMING INDEX MUTUAL FUNDS -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (172)	2/17/2000 11:13:00 PM
From: Jack T. Pearson	Respond to of 428

Will the possible rally in the DOW/SPX also push the NAZ/NDX higher, or will the money rotate out of the NAZ/NDX to fuel the possible rally in the DOW/SPX. I suspect any rotation out of the NAZ/NDX to fuel a rally in the DOW/SPX will be temporary and short-lived. I think the long term trend is to rotate out of the DOW into the NAZ because a large number of NAZ stocks appear to offer higher growth of sales and earnings and lower sensitivity to rising interest rates. Value? We may not know how to value companies that grow at 30%+, but we know how to value a company that is seeing its market dry up and interest costs go up because of rising interest rates.