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

To: BGR who wrote (48511)	2/24/1999 8:09:00 AM
From: Earlie	Read Replies (2) \| Respond to of 132070

BGR: I hope I did not indicate that professionals unload at dips,....I thought I indicated that they are unloading NOW. Many money managers, especially value-oriented types, have under-performed the market simply because the market has narrowed. Money has been systematically withdrawn (or been lost) on junior stocks, then intermediate stocks and now the first of the senior stocks. This is a classic topping pattern. Money managers who have adopted "closet indexing" as a survival device still look OK, but the number of fund managers dancing on this shrinking pin-head suggest a jammed exit at some point in the near future. Divide the funds into those who do some homework and try to find value, and those who do nothing but "momentum investing. You are accurate about the latter group,....they are constantly in and out. The latter group are slowly but surely heading towards cash. LTCM used tons of margin and now (effectively) no longer exists. It also came close to blowing up our whole economic system. Sort of reinforces my point about margin useage I think. Best, Earlie