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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Marq Spencer who wrote (2317)	10/2/1998 1:37:00 AM
From: George L. Smith	Read Replies (1) \| Respond to of 4509

>> it would be 100% accurate if nobody bought or sold the S&P 500. But as many have pointed out, there are funds that mimic the indexes. If money keeps flowing into these funds, they'll drive the stocks that are part of these indexes, rather than the other way around. << I understand this, but I think that once the funds are in, the effect of flow into and out of the funds is significantly less than the momentum or lack there of of the underlying security itself. If this weren't the case then the underlying securities of the fund would move percentagewise in lockstep with the S&P itself.