Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : WILL COCA-COLA ALWAYS GO UP? -- Ignore unavailable to you. Want to Upgrade?

To: John O'Neill who wrote (1189)	8/1/1998 2:03:00 PM
From: dowman	Respond to of 1462

By definition an index found should be 100% invested at all times. Thus real selling would take place at a point in time where inflows are less than outflows in theory. However, there are stories about index funds using leverage to meet redemptions, using margin rather than selling. This sounds good in a bull, but could be real nasty in a bear.

To: John O'Neill who wrote (1189)	8/1/1998 10:29:00 PM
From: Investor-ex!	Respond to of 1462

John, Here is an interesting article on indexer redemptions in a major decline. Guess what? -- capital losses with capital gains taxes! "That will create more than just a loss in share price for S&P 500 mutual fund investors. It will generate a big tax bill, too. Here's why." smartmoney.com