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Rising NDX Tide Floats Mutual Funds' Boats

Just when it looks like the mutual funds and their holdings are down for the count, they come roaring back.
Author:

Darn it if these mutual funds don't get bailed out every time by a giant

Nasdaq 100

rally. Earlier this week, the

Investors Business Daily

mutual fund index was rolling over big time.

(JAVLX)

Janus Twenty was getting clocked, and

(TWCUX) - Get American Century Ultra Inv Report

American Century Ultra was getting clobbered, too.

(GABGX) - Get GAMCO Growth AAA Report

Gabelli Growth was no longer up double digits.

But a couple of good days in the market, and these guys are roaring right back. Heck, they might even be in the game. Janus doubled this week alone! Gabelli's back in the teens. American Century is on track again.

That's been the story for this whole decade. Just when it looks like the mutual funds and their holdings, known here as

The Stocks Everybody Loves, are down for the count, they come roaring back. The funds are always fully, if not overly, invested in their fave Nasdaq 100 and tech names, and they always rocket right along with them.

This resurgence becomes incredibly self-fulfilling. If this trend continues, these funds will be able to go back and raise huge amounts from the public at the end of this quarter to take their stocks up again. That way, the virtuous cycle will continue.

When these funds smell victory, they press their bets and put any money they can scrape together to work to take their stocks even higher. Just another reason it's tough to be a bear.

Random musings:

Today's

Financial Times

TheStreet Recommends

-- free on the

Web, a fortune offline! -- has a cogent article about the changing information world which features

TheStreet.com

prominently. Richard Waters, the author, understands the whole revolution. What a pleasure that some of these offline guys understand the power of the Web. I know their bosses don't. At all.

Earlier this week, I saw a release hit my box from

The New York Times

about how

Sunday Times

delivery will now be available in some out-of-the-way section of Alabama (not out of the way if you live there, of course). Heck, Sunday delivery is available in Chad right now with the right phone line, let alone New Guinea.

And there's an advertisement in

The Wall Street Journal

about how a guy has to go back to the office if he forgets the weekend edition because his wife will get angry at him. Again, the weekend edition is available in Hanoi and Mandalay and Ouagadougou right now. You don't have to go back to the office to get it, even in those towns.

Don't the publishing folks know this? Are they oblivious to the Web? I think so. And proud of it. Don't they realize that their circulations aren't growing because people are adopting the Web instead of the print? Don't they see what the stock market is telling them?

Iomega

(IOM)

blows up. Besides

Herb

, who cares already?

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long TheStreet.com. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.