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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: peter n matzke who wrote (27041)	3/27/1998 3:27:00 PM
From: Russ	Respond to of 132070

It doesn't take too many people pushing in a given direction for a move to happen. IIRC (this is something I heard years ago), if you go down to the beach and see a big wave come in, there's is definite consistent movement of the wave. However, only 10% of the water molecules are doing that. Any given water molecule is likely to be in random motion - it's something like 90% are moving randomly, and 10% are moving coherently. Further, different funds invest in different ways. Value funds tend to run counter to the public, and probably dampen the swings. However, there are a lot of momentum players there, who just follow and amplify any trend that appears. So if 10% of the money is flowing into public names, like MSFT, McDonalds, ..., and the momentum managers jump onto it, you can get big movements. And when the wave crests and breaks, and goes back out ...