English Lessons

DIRECTIONS: Read the following and answer the questions?
 http://www.freeenglishconversation.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
 

"Especially in December when we had that money plowing into ETFs what happens when the money goes in, it makes the junk at the bottom run...When you put the ETF money in, there are liquidity issues in some of those names so if you're putting a lot of liquidity into these stocks, you're really pushing them up fast," she said.

The shares Trust Russell 2000 Index Fund [IWM  79.45    1.67  (+2.15%)   ] was sharply higher Tuesday. "The May outflows were dismal," said Calvasina. Investors pulled $2.06 billion out of the IWM last month. For the year-to-date, the IWM has seen net outflows of $1.99 billion.

"The norm we've seen is when the market is rallying, small caps do better. When the market gets hit, the small caps are doing worse," she said.

"One thing we have really seen in the last two years or so, is it is just very, very hard to peg the bottom in small caps, and people who wait for the bottom tend to miss it," she said.

Calvasina likes the health care and utilities sectors in the small cap universe. She also recently took consumer discretionary from underweight to market weight. "What I love about that sector right now is how much everybody hates it. It reminds me of health care last year," she said.

She expects to see rotations within the consumer sector. For instance, she is eyeing restaurant stocks which were beaten down as investors favored apparel and shoe stocks.

"I think people are itching to go out and buy stuff, and they just weren't seeing the valuation opportunities," she said.

Redler still sees more selling ahead, but he also sees opportunities to buy. "If you sold correctly into the excitement, you always want to be able to buy back into a 7 to 8 percent dip," he said. 

Is the one thing we have really seen in the last two years or so, is it is just very, very hard to peg the bottom in small caps, and people who wait for the bottom tend to miss it," she said?

A. TRUE
B. FALSE  

Is the Redler still sees more selling ahead, but he also sees opportunities to buy. "If you sold correctly into the excitement, you always want to be able to buy back into a 7 to 8 percent dip," he said?

A. TRUE
B. FALSE