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

To: Knighty Tin who wrote (55090)	4/7/1999 9:32:00 PM
From: James F. Hopkins	Read Replies (3) \| Respond to of 132070

Hi Mike; Well I didn't see that coming, heck I was puzzled bad enough on why the RISC prosessor which is 3 times better than any 86 never really got off the floor. How was it that Digital who was years ahead in it's design with the Alpha chip actually failed and had to sell out to CPQ. How AOL with a patched up make shift proxy type internet became the leader in the internet, even though the service still sucks. For sure the best don't always win in this market race, and marketing hype overpowers quality and good service. I guess it's because of the new blood that keeps coming in just don't know any better. --------------------------- But back to 20% of the big corporations freezing spending, and 40% cutting it, that will shake up things. If they start it in June, the effect may not show up till Sept. or at least it may take the market that long to catch on. It's much the same with these stocks, the shoe shine boy is now the expert so how can anyone predict anything. <G> In digging around I found ten times more INDEX funds than I thought existed, almost every retirement fund from the fire men to the teachers have some exclusive S&P index fund that for the most part isn't advertised, they don't need individual investors as they get regular deposits, a lot of it is government money, or at least comes from tax money. Being any index fund is cap weighted; as new money rolls in they MUST buy more of the largest caps no matter what the situation is, as that's the nature of the index. They don't have to sell anything until people pull out of the fund, and for the most part the gillibulls in 401s don't know any thing about this, and wont pull out till they retire..90% have no idea of what is going on or how much retirement they really have, or why they can't take the money out early. -------------------------------- The big crunch will come like in Japan, when the number of people going on retirement starts to out run the new people getting jobs which spit monthly money at the index funds. To prolong this is why the investment bankers are doing a serious behind the scenes lobby campaign to get S.S. money into the market. They will soon come up with a way to get around the objections of even GreenSpam. They will propose a blind trust where no one picks the stocks and the money just goes into an index fund, Then we will have the last rush towards the top of tulip hill. -------------------- There is an irony and paradox to it all, in as much as tons of tax money is already supporting the market now, and with the index funds we move not to a real market economy, but towards communism, eventually the capitalistic brand won't be much different than the other brand except for taxes, all the arguing about which was best turns into a big exercise in futility, as it had nothing to do with one system being better, but the one that got the breaks, hyped itself the most and undermined the competition. ------------------------- Jim