Does Window dressing mean stocks will go up
24 June 2008
Not necessarily so for a general market already tanking.
For investorwords, window-dressing means the deceptive practice of some mutual funds, in which recently weak stocks are sold and recently strong stocks are bought just before the fund's holdings are made public, in order to give the appearance that they've been holding good stocks all along.
Investopedia Says… Performance reports and a list of the holdings in a mutual fund are usually sent to clients every quarter. To window dress, the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings.
Hence, in a climate that is filled with cut losses, and battered portfolios, window dressing may mean to drop a poor performing stock. Hence the notion that the phrase window dressing has often been connoted with going up is wrong.
If I were to have picked what stocks may be window dressed upwards, I might have said banks but they have just begun to sell off. So off the bat without looking at numbers or charts, based on recollection of relatively strong blue chips: MWC ALI TEL AP maybe AC SM SMPH
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