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To: LTK007 who wrote (4379)	6/2/1999 9:37:00 PM
From: James Strauss	Respond to of 13094

Max: I'm referring to small cap value stocks... These are still undervalued... The Nasdaq averages are overpowered by a small group of large cap stocks that are dragging down the whole average just as they lifted it up before... Jim

To: LTK007 who wrote (4379)	6/2/1999 10:20:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 13094

Max, the Nasdaq is dominated by large cap high tech stocks like MSFT and INTC and is not a measure of small caps as it was a few years ago. Indexes that offer a good measure on the small caps are The Russell 2000, S&P 600 Small CapIndex, and the Wilshire Small Cap Index. I believe as Jim does, that the small caps continue to offer the best opportunities in our markets, but their lack of liquidity makes them more volatile in both directions. Fear in the market will create a rush to the exits in small caps before and more severely than in large caps. A good example is the recent inflation worries creating a sell-off and (I think) possibly a buying opportunity in the small caps. To sum it up, as long as their is confidence in our economy and optimism for an end to the overseas malaise, there is no better place to park your money right now than small caps. Good luck Max, and thanks for leading me to Trader's J's thread. Well run thread with serious traders. AS