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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?

To: AriKirA who wrote (262)	4/8/2000 1:29:00 PM
From: Eashoa' M'sheekha	Respond to of 960

Don't think too hard<g> Making sense of the tech rebound isn't required William Hanley Financial Post Silicon Valley sits right atop the San Andreas Fault in California, but that hasn't slowed construction and development in the world's technology centre. Similarly, the rolling quake that rocked the technology sector on Wall and Bay streets hasn't stopped investors from quickly rebuilding their expectations for tech stocks even as the tremors recede. Which takes us to Germany and some illuminating research on no-brainer investment decisions. Psychologist Gird Gigerenzer decided ignorance is a terrible thing to waste. So he used it to make a 47% gain in stocks over six months. Dow Jones reports that Gigerenzer wanted to test whether decision-making based on ignorance plays a role in the market and could be used to profit. Looking at the returns he made by investing a "high five-digit" amount in stocks picked by a random group of Munich shoppers, he believes it's fairly safe to say investment isn't necessarily a science. His "ignorance funds" outperformed the market and beat top mutual funds.Which brings us back to technology stocks, blind faith, no-brainers and our oft-repeated theory that it doesn't help to think too much about the market. It just so happens that Gigerenzer's 47% didn't quite match the six-month gain piled up in North American tech stocks until the recent upheaval. The rotation into some of the old economy, non-com value stocks at the expense of new economy, dot-com growth stocks seemed to some observers to be a sign of intelligent life in the stock market. But again, that may have been another case of thinking just a little too hard. Remember, if some seasoned tech analysts declare that the tech re-evaluation revolution requires them to park their preconceptions at the door, then investors must cast off the shackles of previous reason and go with momentum. Meantime, while the market and the marketing people at brokerages appear to demand the setting of target prices for stocks, one senior trader tells us that "targets are meaningless." It seems to us that if you must build your house over a fault line, you should build it with maximum safety features, the first one being untrammelled access to the closest exit. That's a no-brainer, too. --- --- CDNX bias revisited: Bill Hess, chairman of the Canadian Venture Exchange, notes that our April 4 column about the CDNX composite index gave the impression that the composition of the index is changed daily, when it is actually adjusted quarterly. While we deduced that the index had a positive upward bias, Hess makes the argument that in certain circumstances, the bias could be negative to the level of the index. --- DUH!! Heh Heh Heh