Re: Investments

Hara Ra (harara@shamanics.com)
Mon, 09 Jun 1997 00:52:40 -0700


Max More wrote:

> I read an article (in Fortune, I think) that warned investors to be careful
> with index funds based on the Dow or the S&P 500. The writer noted that
> these stocks may be overvalued because index investing has become so
> incredibly popular that these stocks just keep getting pushed up.

Despite their popularity I doubt that the index funds have a significant
effect on the Dow or S&P 500, for the trading volume of the stocks being
indexed is far larger that that of the index funds.

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| Hara Ra <harara@shamanics.com> |
| Box 8334 Santa Cruz, CA 95061 |
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