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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (22779)	7/30/1998 10:06:00 PM
From: James F. Hopkins	Respond to of 94695

Kip ; It's a good article , my idea of the why has to do with the huge increase in S&P 500 index funds, the market gets trapped into buying the ones that move the index the most, hence the big caps are locked into getting bigger. At some point that will change if people start pulling out of index funds, till then the small caps will have a hard time no matter what their P/Es ---------------- He made one mistakes, have underperformed big-capitalization stocks for about four years now. that's only part true..like if you look at the whole four years sure they really have underperformed. But relatively speaking they have had some surges, ( not lasting too long ) but none the less surges which at the time put them gaining at a faster rate than the blue chips, only to take big hits after the market lost it's liquid and started selling down. The small cap run is one of the best runs to get in on, but knowing when to get out is the trick. The whole thing is cyclical. Jim