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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (4914)	9/1/1998 12:53:00 AM
From: James Clarke	Respond to of 78576

OK, so it was not mutual fund shareholders selling, it was fund managers. But that's the same thing. You're a mutual fund manager with a 2% cash position who all of a sudden gets 4% of his shares redeemed in a day. He's got to sell. He can't choose when or whether - the only question is WHAT to sell. And when all the institutional buyers know what situation he's in...well, you just saw it. The market will probably bounce tomorrow pretty big at the open (if it doesn't, then put on your crash helmet), but I will be selling anything I still own that is not nailed to the ground (i.e. does not have big tax consequences) if they participate in that rally. This bounce will fail because the psychology has changed 180 degrees and the big names still have 20 or 30% to fall before value conscious investors will rescue them. There was a lighter side today. A joke was going around the Street that this is the Monica market, because it...goes down. Apologies to all, but I just wanted to let you know what institutional investors are spending their time on.