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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Venkie who wrote (40992)	9/6/2001 2:55:32 PM
From: stockman_scott	Respond to of 65232

Market Sings Redemption Song By James J. Cramer 09/06/2001 11:40 AM EDT There's a lot of pain here as the liquidations continue. I have never seen so many hedge funds shoot against so many mutual funds in my life, and it is something that is happening all over the Street. There are more hedge funds than ever before. There are more mutual funds than ever before. The hedge funds have money coming in because they are outperforming the averages. The mutual funds are bleeding from their eyeballs. The American public seems to be waking up to the fact that the losses don't need to be taken anymore. They are swapping out of losers, taking the losses and moving out of high-tech, high-growth funds. They are moving out of concentrated funds. They are moving out of funds down 30%, 40%, 50%, 60% and 70%. You are now witnessing the unwinding of the mutual funds that have kept the tech balls in the air for so long. Their ad campaigns telling you to think long-term are failing as people are realizing that they might never get back to even no matter how many years they hold. And it is killing the market because the mutual funds that are getting redemptions don't own Cat (CAT:NYSE - news - commentary) or Coca-Cola (KO:NYSE - news - commentary). They don't own Avon (AVP:NYSE - news - commentary) or Colgate (CL:NYSE - news - commentary). They own the litany of companies that are on the verge of preannouncing or are preannouncing as I write (e.g. Motorola (MOT:NYSE - news - commentary)). They own the quartet of pain: EMC (EMC:NYSE - news - commentary), Cisco (CSCO:Nasdaq - news - commentary), Sun Micro (SUNW:Nasdaq - news - commentary) and Oracle (ORCL:Nasdaq - news - commentary). How long will this redemption period last? I think it last for a couple of months, and it will end near the end of November when tax-loss selling tends to expire. I have raised a lot of cash. I am still raising cash. I don't want to deploy it until I read that these mutual funds are done. Or until I find out they are done. Since they just began, it is illogical to believe they are about to be finished.