Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (38950)	6/10/2000 6:40:00 PM
From: BGR	Read Replies (2) \| Respond to of 42523

The article gives us no reason, though, as to why on average the active fund manager trails the market. It only mourns the fact that the right of an active fund manager to sell shares as (s)he sees fit - if only at the cost of a lower return for the investor - is being taken away. What has the world come to, I wonder! <VBG> Though, I must admit, the capitalization rules are not fair. Well, those rules should change, but in the mean time, it makes even more sense to invest in index funds, which are not subject to such rules.

To: Ilaine who wrote (38950)	6/11/2000 6:20:00 PM
From: Mark Adams	Read Replies (1) \| Respond to of 42523

I understand that indexing distorts the market, yet the extreme amount of attention paid to the DOW and Nasdaq index numbers directly impacts consensus opinion. Knowing this dichotomy exists should prove profitable somehow. In this environment, not only do we have to be wary of inflated valuations in individual issues, resulting from blind indexing taken to extreme, but also be aware that ignored value stocks will likely take it on the chin if mass psychology shifts result from the index dropping. In the past, stealth bear and bull markets in various sectors provided opportunities as the averages continued their march to new heights. Picking value stocks in sectors experiencing a stealth bear proved profitable when rotation into that sector occurred. Mass psychology (and general market risk) were small risks that could be offset by managing diversification. I assume that sectors will continue to experience stealth moves masked by the published indexes. But how will this translate if the widely followed indexes are flat to down? The Fear of a shift in Mass Psychology keeps how many of us on the sidelines?