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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (26480)	7/25/1998 3:58:00 PM
From: marc chatman	Read Replies (2) \| Respond to of 95453

Slider, if we work from the premise that a correction is a 10% or greater decline, then wouldn't you expect the OSX to slide at least 10% with the rest of the market? Perhaps we have become immune to 10% declines here -- heck, didn't the OSX drop 10% in the last 2 days? From here, it's only 7 or so points more. Also, you have to consider the issues of redemptions, margin calls, etc., which I imagine have been taking their toll on the sector and will continue to do so. As for sector rotation, it will happen someday, but why would you think the fund managers might prefer the oil patch as opposed to some of the stocks I mentioned in my previous post? After all, how many chances do they get to buy MSFT, CSCO, TRV nad some of the other blue chips at a real discount? Once, maybe twice a year? You're a fund manager; you are ranked each year depending on where you stand relative to the averages; are you prepared to risk that lucrative position? These fund managers, for the most part are sheep. And in this market, it has paid off handsomely. Eventually, some of the value guys and bolder hedge funds will build positions, then traders will start to play the long side a bit more, and then the rest of the market will start to become aware of all that and bid up these stocks. And it will probably happen before the fundamentals turn completely. But that still could be awhile, don't you think?