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To: gentry200m who wrote (1400)8/22/2002 2:41:51 PM
From: Chip McVickar  Respond to of 1854
 
Ge,

It is quite possible that iShares and other exchange driven vehicles are going to take the place of many mutual funds.

IMO...., Sector rotation investing is an area of the markets that is gaining followers and may be the future wave of investing..., the introduction of iShares, etc... is in the nascent stages of this shift.

I believe the next driver of these markets will be whole baskets of stocks... like what we saw in the small value stocks or Russell 2000 after Sept 2001.... up from 373.62 to 523.79.

That individual companies with market names like MSFT and or CISCO will not be driving the markets as their types did in the '90s.... Rather sector baskets will...!

Technically there's a problem because many haven't been around more then a few months or years. But volumes are beginning to grow.

Take a look at the weekly chart of:
IBB ... Nasdaq Biotechnology
IWN ... Ishare Russell 2000 Value
IWO ... Ishare Russell 2000 Growth

Just some thoughts,
Chip