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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Turtle Pad who wrote (31708)	8/27/1998 5:13:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Turtle Pad, Exactly the same thing happened in 1968-1972. The small cap stocks died, then, when the large cap stocks went down, the small caps went down even more. Again. When folks start to get scared, they look for safety. There is no safety, but they believe that bloated shares of companies they have heard of are safer than those of little cos. In terms of bankruptcy, they are probably right. But when the nifty stop looking so nifty, they fall fast and hard. And, the small caps recovered first and much faster, for whatever comfort that may be. They had not lost their credibility as the Avons, Polaroids and Xeroxes did in the nifty-fifty bull market prior to 1974. One thing about small cap stocks is that if there is any life there at all, they can be taken over for chump change. A GE cannot. That makes them easy to rally when the smart firms start their merger activity. The idiot firms do buyouts at the top, the smart firms at bottoms. And, we have more buyouts at tops, so most cos. are idiots. <G> MB