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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (7232)	3/7/2000 6:16:00 PM
From: t2	Read Replies (2) \| Respond to of 24042

When the day comes for the index announcements I think most fund families are going to let the day traders go wild while they quietly transfer shares in the background. Why would an active fund manager want to give up his gains and hand it over to an index fund within the same family. You have to question----why give up your gains. I don't think mutual fund holders would tolerate it if it happens. I doubt that it does. He/She is accountable for his returns and is not interested in making an index fund manager happy. If the active manager does not want to sell---the index funds will have to buy it on the market, driving up the price in a big way. Sorry, your theory makes no sense.

To: TigerPaw who wrote (7232)	3/7/2000 11:01:00 PM
From: SJS	Read Replies (1) \| Respond to of 24042

Good point. We may see a massive restructuring of BOTH the DOW and S&P to include more new tech, which seems to be on a LT winning vector. After all and DON'T forget, these markets indexes compete and the marketing of a winning index is all part of the game. If the DOW is structured with too much old vs new, and becomes non-representative of what that index should represent, then it will continue to succumb to mispresentation and consequently selling pressure. It's funny, but the market's like an organism. Like a bacteria adapting to drugs that used to kill it. In the past, the entire market used to be very much reigned in by direct interest rate rises. Now, certain stocks and segments have learned to adapt against that "cure". It's learned how to ameliorate that attack, and be less sensitive to it by using stock to fund what direct borrowing used to do. What could be a large cattle prod for the the NAZ (better than than interest rate rises) would be a weaning of margin loans on all stocks 0, ie, all cash trades. That's how you get the NAZ side to slow down, if you're predisposed in a free market economy to having someone make that decision. Frank Zarb indicated a few weeks ago that a message has already gone out raising to allow houses to raise margin requirements, and I'll bet they go higher and on more stocks before to much longer. Tacitly, of course. Steve