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To: mauser96 who wrote (2494)	9/9/1998 1:36:00 PM
From: Sam Citron	Read Replies (1) \| Respond to of 3424

OTOT...I do think that the stock market is progressively becoming more institutionalized, and that this in turn is a valid reason to expect large caps to do better.Therefore it may be more than a late bull market phenomenon. I completely agree. I meant to say that the Nifty Fifty craze is a late bull cycle phenomenon, not indexing, which is becoming to institutions what mutual funds have become to individuals, namely a way of achieving safety and diversification (in theory, at least <g>). Indexing will become more and more critical for large and small investors alike. Beating the index will always prove to be a losers game for the majority of investors who are foolish enough to try. So why bother? Of course, people will still pay huge premiums for Buffet to manage their money because he beats the S&P year in and year out, but that is rare performance and it don't come cheap.<g> Sam

To: mauser96 who wrote (2494)	9/9/1998 1:53:00 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 3424

Hi Lucius, Enjoying the OT discussion on mutual funds. I've been having this same discussion with others and one thing that is becoming more evident is the point you make about the fund managers becoming "closet indexers". I wonder at what point the consensus thinking of the fund managers will be that unless and until they are ready to take some real risk and begin "spreading the wealth around" that they risk doing potentially devastating damage to the overall market. How many times will it have to occur that whenever there is a "nifty fifty" correction to be followed by fund inflows right back into those same stocks to the near exclusion of the small and mid caps? I'm not sure what the answer is, as you say, the size of the funds dictate that liquidity be a paramount concern, but if they're all playing the same game to the extent that valuations on these stocks scare new money away and at the same time the new money refuses to enter the broader market, well, I think you get the picture. bp