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To: Earlie who wrote (32126)10/29/2000 4:47:26 PM
From: UnBelievable  Respond to of 436258
 
You Know You Can't Believe What They Say In Barrons. <gg>



To: Earlie who wrote (32126)10/29/2000 10:45:04 PM
From: Gut Trader  Respond to of 436258
 
Seems SSB is recommending exploiting some index changes

ssbgei.com

How to Catch a Falling Knife
Preparing for the Largest Program Trade EverPlease see our new publication How to Catch a Falling Knife

The publicly announced, likely transition of the Morgan Stanley Capital International (MSCI) indices to some form of free float weighting may motivate the largest aggregate program trade in history. Although some transition costs may be unavoidable, investors can mitigate the worst of the MSCI transition effects by switching now to a Salomon Smith Barney PMI strategy.

Because more capital is directly benchmarked to the MSCI indices than to any other world equity index, the impact on certain stocks could be significant. The sheer size of the prospective changes to the MSCI indices may roil world stock markets, with potentially substantial dislocations in certain stocks and markets. Stocks that have been overweighted relative to their free float likely would be sold in huge size, while stocks that have been underweighted would have to be bought in similar proportions.

Furthermore, active managers may enjoy a unique opportunity to exploit the market inefficiencies that will likely result. Our latest report, How to Catch a Falling Knife, discusses these issues in depth.