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To: JDN who wrote (575)	8/9/1998 11:21:00 AM
From: Tim J. Flick	Respond to of 655

Jdn... They have been predicting this for the past three years with little success. They all assume that the small caps will play catch up with the big boys eventually and if you missed the run up, here is your chance. Here is what has happened. There are more people in the stock market today than ever before. Ma and Paw six pack that have saved $10 to $20 grand are tired of getting 5% on their CD's. With thousands of new mutual funds advertising that they are returning 20%+ they have finally forced Ma and Paw in the market. Well Ma and Paw are not stupid, they want their Mutual Fund manager to buy only the blue chip stocks,(household names). You can see where this is going. You have too much money chasing too few blue chip stocks (with earnings). Therefore, when a correction in the market comes, the small caps get killed because of little liquidity. This forces the guru's to say "Stay away from the small cap stocks because they decline more in a correction." So Ma and Paw read this and put more money in blue chips. When will this change? Hard to say, but with the Russell 2000 hitting a muti-year low last week, I do not see this happening anytime soon.