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

To: yu who wrote (11845)	4/23/1999 9:12:00 AM
From: James F. Hopkins	Respond to of 99985

There are too many closet S&P500 tracking index funds many we never see doing retirement money from teachers to fireman etc. They buy and hold and only sell if redemption's out number the monthly deposits ( hardly ever in their case except for adjustments when the index takes in a new stock) , when monthly money comes in they put it to work and have to buy more of the bigger ones. Some day it will not work but I think that's a long way off, most of the 401s in it never take their money out until they retire, & have no idea of how it's invested. So when things change and we have more people retiring than working it will finally fail, but if your looking it will give plenty of notice. In the bear market the 401s support the S&P500 stocks more than the small ones, & lots of managers are very happy if they can mirror the S&P500; they don't try to out do it. Many of the funds I'm speaking of are privet institutional funds, and you have to be an employee to invest in them. Jim