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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (5512)	7/2/2001 9:26:10 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 74559

Well, I don't know about becoming publicly traded.. There are too many reporting and disclosure requirements that would make it difficult for hedgies to operate in the discreet manner that they must in order to avoid having other funds gang up on them. What we currently see is a system geared toward enticing people to sock money away on a monthly basis in IRA's/401Ks.. etc, providing serious cash flow to the "long only" money managers. This distorts the markets, as we all know, because the hedgies just have a hard time betting against that kind of money flow. But one day the money will run out, or there will be too many shares out there to be bought for values to go up as needed. Supply will outpace demand. And then the mutuals will be in a world of hurt as the hedgies combine forces to destroy the mutuals one by one by taking down their major stock positions. Afterall, as we all know the market is little more than a battle of cash flow that governs supply/demand... And as equilibrium in the balance of power reaches parity, you'll want to be on the side with the bigger guns. Hawk