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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Follies who wrote (2941)	12/28/1998 10:02:00 AM
From: James F. Hopkins	Respond to of 99985

Dale; Yes the same amount of each in respect to the first percentages, I know you understand it , as good or better than I do, I was just trying to make it clear to someone who is new to it, so they don't take the "same amount" so literally as to miss the fact your still buying hypothetically 140 GE , and 110 MSFT..and maybe only 2 of some small company. Or that at this time more of the "new money" is going to MSFT than to any one else, even though she has less outstanding shares than GE. I first got into this as I realized the bigger caps get more and more money from the indexes and that indexing creates a trend is to make BIG Caps bigger and that this happens mostly in bull markets. The OCT 97 pull back was signaled ahead of time by the BIG caps easing off ahead of the smaller ones, and I kept asking myself why..since then we have had a liquid driven market, more than any FA driven one, and more and more earnings reports are just giving us a wink and a nod, there was a fundamental change to the market back in 97, that hasn't come home as of yet. At some point people will realize the market can't just grow but so high if the base don't grow. Big companies swallowing up the little ones, and getting more efficient don't make jobs, & more people going into retirement year after year is eroding the base. The increase in low paying jobs, can't offset the damage as we move into the phase were with both people working they still go into debt & the Fed can only keep her going for so long. Jim