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To: Gary D who wrote (13963)5/27/2000 11:49:00 AM
From: Justa Werkenstiff  Read Replies (1) | Respond to of 15132
 
Gary: "But I asked myself whether there is anything particularly special about the period since the point in late November when that chart begins. Looks like it catches almost all, but not the entire period during which the QQQ strongly diverged from the SPY."

We had a tech. bubble. Fed. meeting minutes for March: "The growth of M2 and M3 slowed in February, partly reflecting an unwinding of Y2K effects and rising opportunity costs of holding liquid balances. In addition, the surging prices of technology-related equities might have spurred depositors to shift some of their M2 balances into equity mutual funds."

Re: "My crude "eyeball" analysis suggests the QQQ may still be pumped up 20% relative to where it was vs. the SPY at the time the strong QQQ outperformance began."

Technology will always outperform the broader market IMO over time with higher volatility.