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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (108402)	3/8/1999 9:13:00 PM
From: hdl	Respond to of 176387

page 51 of Barrons has an article re why one shouldn't index internationally. People wrongly allocate funds per market cap. Thus when Japan had a higher market cap than the U.S., indexers bought more Japanese stocks than American stocks. They bought at the top. this is a momentum strategy that leads to buying high and selling low. when south Africa for political reasons was included in the index, people bought south african stocks which made them overpriced. when malaysia recently took a hit, its share of the index was cut to 1/6 of what it was. so indexers sold at the bottom. dell is up and has gone up partly because some people,mutual funds, money managers buy the index , and some use it as neutral and underweight and overweight certain stocks, sectors from that starting point. dell has a high weight in indexes. people buy dell altho it is too highly priced, analogously to buying too much of a countries stocks when that countries market cap is too high. It is a poor s