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To: Patrick Slevin who wrote (139)12/27/1998 10:36:00 AM
From: jjs_ynot  Read Replies (1) | Respond to of 548
 
The spiel is that there is a self-fulfilling overweighting of the large caps due to the market cap weighting.

This is surely true for new money coming into the index funds having to go more into the big caps. The effect of rebalancing to new weightings is open to debate.