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

To: Skipperr who wrote (26097)	9/1/1998 9:20:00 PM
From: Monty Lenard	Respond to of 94695

former IRS commissioner Damn Skipperr, been wondering where all our tax dollars went. :-)

To: Skipperr who wrote (26097)	9/1/1998 11:20:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Hi Skipper; BTW they are based on the "cap size" and the tech sector, more than the merits of the companies or the P/Es, they are Mo Mos ( momentum stocks ) that indexers must buy the most of, like it or not. Out side the tech sector just take the largest caps you can find mo mo up , and go cash in down turns. All your doing is hitching a ride that when the market is going up you know these will be bought by the index funds. also weight them by market cap. The big get bigger, it's the nature of the index itself not the company, and it will take a melt down to unseat them from their lofty positions. It's insane that the beast is set up this way, but I didn't start the index funds , or decide how it should be weighted. While the S&P is suppose to reflect the market and it does, it turns out that it dictates to the market. Consolidations such as this may adjust weightings ( some ), but not a lot, and then it's back to the same thing. Earnings take a back seat after they get to the top of the hill. Can you picture MSFT ever selling enough diskettes to be bigger than GE ? well they seem to be catching up fast, already bigger than MRK and PFE put together.. It's insane, MSFT is bigger than XON, CHV and Amoco combined ...but insane or not until a market melt down comes it's too late and the insanity can't be cured. Yes there is a way, get the stupid people who make up the S&P index to add a new index, for just stocks over 200B, dropping them out of the S&P 500, also there should be no duplication of stocks in the S&P 100 with those in the S&P500, how in the hell can some company that is almost nothing by comparison be allowed to make up an index that dictates to the market; and in a way that doesn't really represents anything but insanity, forming huge monopolies with Ungodly power and rewarding the CEOs and insiders as if they were GODs It's sick really sick, and the results down the road will eventually produce a hegemonic system lead by insanity. Jim