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To: Bill Harmond who wrote (101357)	4/17/2000 11:37:00 AM
From: Sam Citron	Respond to of 164684

>>I can't see how [margin debt] applies to the broad market. It is certainly true that we have seen sharp divergences lately between the performance of more aggressive sectors (NASDAQ) and less aggressive sectors (NYSE). And there is no question that margin debt is highly concentrated in the more aggressive and volatile sectors. But these days, NASDAQ volume swamps volume of all other exchanges. In a sense, therefore, NASDAQ is the broad market, because of the liquidity and market cap. In spite of relative valuation disparities, I can not see how a sharp decline in NASDAQ would not spill over into other markets. I agree that margin debt liquidation should not directly cause a correction in the broad market (NYSE). But I think there would be a high degree of correlation nonetheless.