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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Investor2 who wrote (10331)11/24/1997 3:24:00 PM
From: John Dally  Read Replies (1) | Respond to of 94695
 
Hi I2,

isn't the first week in December one of the historically strongest weeks of the year?

Sometimes the seasonal factors don't play out the way they're supposed to. For example, technology stocks are supposed to sell off after spring. Summer is usually a time when tech stocks hit their yearly lows. Well, it didn't work out that way in 1995, and of course this summer, 1997, was sheer fantasy!

Also, remember the "small-cap effect?" In 1997, even though the major indicies weren't down much, most of the small-cap tech stocks I follow (and invest in) sold off 40-60% between Jan and April. While the analysts were predicting that the small-caps would catch up,the DOW hit new highs (into March) and the small-caps kept going down, down, down, . . .

Sometimes it happens, sometimes it doesn't . . .

Best regards, John.