Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (14430)	5/5/2002 9:58:11 PM
From: russwinter	Respond to of 78596

Besides the compelling valuations, the extreme liquidation by biotech mutual fund holders is signaling classic and rather mindless "afterthought selling" crowd pyschology. It's almost as if they see these on their statements and think (derisively), "I own that?" and then "I'm not supposed to". Rydex BTK: 7-01- 2001 was 433.9m 10-17- 2001 was 289.5m 1-30-02 was 267.8m 4-6-02 was 217.0 5-3-02 was 179.3 m, a full 58.7% reduction in fund assets from just 10 month ago. That's a major, almost epic sector capitulation. An example of what happens when a sector gets completely out of favor and neglected: Rydex Precious Metals 7-1-01: 27.2 10-17-01: 55.4 1-30-02: 71.7 4-6-02: 70.6 5-3-02: 74.7 Nice bounce/powerful rally, and the most rewarding sector to have owned during the period, but still not too terribly popular: many nonbelievers.