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To: GST who wrote (114506)	1/5/2001 8:41:31 PM
From: craig crawford	Read Replies (2) \| Respond to of 164684

First of all, I construed your post as saying that mutual funds were doing a lot of selling today. Not that individuals were selling their mutual funds. Either way it doesn't matter, but I think it would have been less confusing if you used the words redemptions. I don't disagree that we have seen outflows. There was even a news story out there that said they were erroneously reported and much higher for December than previously thought. People always pull their money out at the bottom. Bottoms are never made with people pouring money into equity mutual funds. It's always on heavy redemptions. Furthermore, mutual funds have been raising cash on the sidelines the last few months to handle these redemptions. That has exacerbated some of the selling. Your take is that people are going to exit the market en masse and mutual funds are going to have to dump more stocks to fund these redemptions. My take is that Greenspan will do whatever it takes to stabilize the markets here and then managers are going to have all that cash sitting there needing to be put to work. It's quite likely that managers are sitting on their hands and not ready to put that cash to work until we get some earnings reports. They don't want a bunch of exposure until we get some clarifications from companies out there. With this buying strike going on until the uncertainty about the next two quarters is clarified, you get these large retracements and nervous volatile sessions. It's highly likely that fund managers will put a lot of money to work once companies detail their outlook. I believe many of the outlooks won't be so hot, but money managers won't have to worry about being blinded by something out of nowhere. That is what is scary. Buying something and then having the company blow up out of nowhere. That's why I think there will be a post-earnings rally. I'm still wondering where are all these major earnings warnings we were supposed to get? Yeah, Chrysler sounded horrible but aside from that where is the YHOO earnings warning everyone predicts? Gosh, YHOO might actually grow this quarter!