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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: ed who wrote (12203)	12/28/1997 11:37:00 PM
From: John Carpenter	Respond to of 97611

I agree. I'll never believe those who tell me that there are rational market participants in the short term. Those who espouse an efficient market hypothesis say that at each second a stock is fairly valued because it reflects all information known at that time. I disagree. Corrections last for several months and many issues go down almost everyday. It seems that the funds have too much stock to unload all at once, so they unload a portion of their position everyday(which usually takes two to three months). This is completely at odds with those who claim that equities are fairly valued each and every second. Large funds and institutions have the most sway in the market. When they decide to accumulate positions again, the correction will be over. I suspect that the larger institutions act in concert to protect the huge sums at stake. Although their failure to beat S&P 500 returns would negate my suspicions.