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To: Danny who wrote (102420)	4/30/2000 12:15:00 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

Danny, Here's something to consider before hedging. Excerpt from todays LA times. >Yet as the stock market's miserable April comes to a close, there are few signs that small investors are rushing en masse to lower the risk level of their portfolios--despite a net 15.6% drop in the Nasdaq composite stock index for the month. Instead, the evidence suggests that many individual investors have held on tight to their tech stocks and aggressive mutual funds. What's more, other individuals who may have sat out the run-up in "new-economy" stocks in the first quarter appear to be stepping up to buy now that prices are lower--even if, by historical yardsticks, these shares arguably are still overvalued. Last week, major mutual fund companies reported some surprising numbers regarding their March and April cash inflows. On balance, investors were buying less of the tech-stock and aggressive-growth funds that enjoyed unprecedented demand in January and February. But even with the heavy losses in those high-risk funds since mid-March, many of the funds had net cash inflows even for April. Janus Capital, the Denver-based fund giant that has become a symbol of high-risk, high-return investing in the last few years, said it took in a net $3 billion in new money in April. That was about one-third its recent monthly peak inflows. But considering that the market headlines in the first few weeks of April were primarily about the supposed demise of the tech-stock boom, $3 billion represents a stunning vote of confidence on the public's part. Likewise, T. Rowe Price Associates in Baltimore said its giant Science & Technology stock fund took in a net $300 million in new cash in April, and that the fund saw only a few days of net redemptions by investors even during the worst of the tech-stock meltdown. Now, contrast that experience with hedge-fund king George Soros' announcement Friday that he's scaling back his investment firm's risk-taking activities after decades of adeptly playing wild swings in currencies, bond markets and stock markets worldwide. "Markets have become extremely unstable and historical measures of value . . . no longer apply," the 69-year-old Soros told clients.