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To: Crimson Ghost who wrote (41631)4/5/1999 3:26:00 PM
From: Robert Douglas  Read Replies (1) | Respond to of 95453
 
The four major changes between big caps and small caps that have taken place over the last 30 years are:



Year: Switch to: Years Outperform:

1974 Small Caps 10 years

1984 Big Caps 6 out of 7 years

1991 Small Caps 4 years

1995 Big Caps 4, likely 5 years and counting

-Robert



To: Crimson Ghost who wrote (41631)4/5/1999 3:40:00 PM
From: BigBull  Respond to of 95453
 
George, you may be right but I always thought it was the Cats and Dogs that ran, just before a top? Anyway, if the the ad line doesn't begin to heal up over the next month, I'll throw in the towel and join you in the US stock market bear camp. But if it does, then the bears will have to throw in the towel, and say "sweet spot" with the Bull. Lets watch and see what goes down over the next 4 to 6 weeks. I think we are at a very important point in the over all market here. Time will tell, but not much time.



To: Crimson Ghost who wrote (41631)4/5/1999 4:08:00 PM
From: gpphantom  Read Replies (1) | Respond to of 95453
 
What caused the drop in the OSX at the end of the day? Most of the day I was comfortable with it in the mid 66's; looks like it closed at 64.88



To: Crimson Ghost who wrote (41631)4/5/1999 4:14:00 PM
From: Jacob Snyder  Read Replies (2) | Respond to of 95453
 
small caps will outperform after:

1. the market drops 15%
2. the people who buy on dips buy.
3. the market drops another 15%.
4. the value investors who've been 50% cash for the last two years, because they can't find anything to buy, buy.
5. the momentum guessers, (who have been doubling their net worth every 12 months by taking leveraged bets that overvalued stocks will become more overvalued) have margin calls. Think of LTC writ large.
6. the market drops another 15%.......or more

I'm very certain this is going to happen. I'm very uncertain on when.



To: Crimson Ghost who wrote (41631)4/5/1999 9:15:00 PM
From: still learning  Respond to of 95453
 
Re small caps. I'm not sure that's true. Depends how you define a change in leadership:

"Fundamental changes in leadership usually occur only after severe market declines.
Small caps will vastly outperform in the next bull market. But not until then."

If that's true small caps will have to endure a full down market before they're in a position to outperform big caps. Question is, if this bull has some life left, and then we have to wait thru a correction, how long will it take for small caps to begin to emerge?

However, the other school of thought is that small caps do well in the last stages of a bull market. That means small caps could still become a more lucrative holding without taking on a market leadership role.