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

To: Ilaine who wrote (40007)	12/18/1998 10:49:00 PM
From: Earlie	Read Replies (1) \| Respond to of 132070

CB: Loved it! Best, Earlie

To: Ilaine who wrote (40007)	12/19/1998 3:25:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 132070

If the S&P was Dollar weighted instead of market cap weighted , then it would represent ALL the companies in proportion to their actual percentage growth, as it is now with all the index tracking funds, the big caps command the index and with the arbitrage trading, the index can in no way represent the growth or contraction and or of the overall health of the majority of the stocks in it. A smaller company can double in price and hardly even move the index as much as MSFT does with a 1/4 pt move. McGraw Hill & Co has really pulled the wool over the eyes of 95% of the people fixed on the index and thinking it indicates how good the country is doing.. With more and more index tracking funds, and all the derivatives they trade to track it , I can make a case for it being a capitalistic form of communism, which goes right over the head of the commie haters..they embrace it with both hands, but to be a member of the PARTY you need the OK from Wall Street..which is the Third ( and controlling party) to our so called two Party system, only we are supposed to be too stupid or brain washed enough not to see it. Jim PS If your up to reading a longer post about indexes try this one, Message 6900707