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To: Sonny McWilliams who wrote (54605)	4/27/1998 2:45:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

Sonny, RE: "To: Pierre Aydin (54604 ) From: Sonny McWilliams Monday, Apr 27 1998 2:15PM ET Reply # of 54606 Pierre. Money managers are selling to pick up stocks lower.. Some are reducing their stock holdings. Interest rate hike talk is a good excuse. Too bad the market is accommodating them." I reposted your note because there is a lot of truth in in more ways than one. 1. Yes...this is mainly due to institutional selling. The little guy will hold. The truth is the smaller investor has been satbilizing the market all along. 2. The majority of investors will remain in denial. Like, "one rate hike" won't hurt. "Or all this is just made up to get the market to correct so the big money can buy back cheap". The reality is that when one hike occurs, rarely is that the only hike. After the market shudders, like today, it can turn around and even go to new highs. The sector rotation however shifts more to late market cyclicals like natuaral resource stocks...that is if it's perceived that the little back up in rates isn't enough to through us into a recession. When that occurs then everything corrects. For right now, we may be shifting in to the final throws of this bull market run. 3.RE:" I guess the earth would be swallowed up should there be a slight rate hike. Sheesh. I am waiting to pick up some stocks cheap at this point." Yet another telling post on your part. The reality is that like it or not, especially from these levels, the fear of a rate hike marks a possible change in direction by the FED. As I've stated before. nothing can kill a good bull market like FED rate hikes. You might be right to be sarcastic about it but the reality is that money in stocks gets spooked. Could be a false alarm but you can see how fast the market reacts. Fear and greed at its best. Best regards, Jim