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To: sea_biscuit who wrote (24057)8/23/2001 9:49:43 PM
From: uu  Read Replies (4) | Respond to of 25814
 
Dipy ---

Perhaps I am being a bit pre-mature in assuming this -- but I think my (and Jock's) portfolio may see at least a 20% gain by the end of this year (much sooner than I had anticipated).

Cisco's John Chambers just made some positive comments about their business conditions becoming stable.

And once again Keep in mind, it is the illogical factors of the market (e.g. basic human emotions, greed and fear) that define the logical factors (e.g. P/E, P/S, perception of growth rate, etc.)! combine that with a tremendous amount of cash sitting out there and we may start the beginning of another (even bigger) bubble that can go on for at least another 10 years before it bursts! In the meantime, one just has to maintain his/her greed and to enjoy the ride!



To: sea_biscuit who wrote (24057)8/23/2001 11:22:22 PM
From: TimF  Respond to of 25814
 
No I don't think price changes of the index components effect the index divisor but since the index is defined as the total market caps of all of the companies a company that gains or loses market cap would have a smaller impact on the index even without an explicit rebalanceing.

Using my example of JDSU again. If it went down another 50% (and I hope it doesn't because I bought some at 7) it would effect the S&P less then when it went from 140 to 70.

Tim