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To: Arthur Tang who wrote (750)	3/28/1998 6:02:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

What window dressing means to an average investor? Mutual funds get the investors by the stocks they are holding. The managers of mutual funds have to shift into the stocks in fashion and exit the stocks losing money when they publish each quarter how they are doing. The value increased gets the investor's attention. The incoming money for the fund depends on the published data. So, at the end of the quarter, they window dress to make themselves look better. It is difficult to start window dressing early in the quarter. With a volatile market the window dressing is forced to be done two weeks before the end of the month at the end of the quarter. But isn't it window dressing for the next quarter? If it is window dressing for the next quarter, then, it is to investor's advantage to learn which stocks they are, and move into them for gains in the next quarter, as more money comes into the mutual funds, who are successful to window dress. Wouldn't the mutual fund therefore place all the new money into the stocks they just favoured? This supports higher P/E ratio will go higher still theory.