The AOL Example
                       A good example of this mentality is  AOL,  which  wasthe largest contributor to several funds’ performance during the  last  partof 1998 and the first quarter of 1999.  It  had  a  parabolic  move  to  theupside. Only those  managers  that  had  the  stomach  to  bet  on  investorpsychology instead of visible earnings got  the  full  performance  benefit,but many jumped on the bandwagon at higher and higher levels  afraid  to  beleft at the gate. Surprisingly, even some value funds  rationalized  reasonsto buy AOL. While arguing that AOL made sense for a value fund is a  bit  ofa  stretch,  it  does  show  how  a  herd  mentality  can  drive   a   stocksubstantially higher. I hope those managers  made  good  sales  on  the  waydown. If the fund managers decide to play the  AOL  game  again,  price  andvolume will let us know the "GAME IS ON."