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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hlpinout who wrote (88672)	1/5/2001 9:38:28 PM
From: Andreas	Read Replies (1) \| Respond to of 97611

Here's another claiming 20% drop! Here's a post I grabbed from the zoo. "CNBC just had on John Bogle of Vanguard. He says that the market could fall up to another 20% because of mutual fund redemptions. I think that he said that redemptions were running a 1 to 2 billion a week as people cash out" That's two well respected guys in less than 2 hours who claim nasdaq has another 20% drop to go. Why is 20% so fashionable these days? As Michael pointed out that would bring nasdaq to around 2000. That of course raises the question - assume nasdaq drops 20% to 2000, will cpq drop more or less than 20% (or heaven forbid it should go up). The cause of the 20% drop is given as mutual fund redemptions. With about 55% of cpq stock owned by institutions it is hard to tell to what extent redemptions would impact cpq. Furthermore, if a fund has to liquidate due to redemptions what is it that they will sell? Will they hold on to csco and sell cpq or vice-versa. Who knows? I sure don't.