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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Lars who wrote (155)4/2/1997 6:59:00 PM
From: Kevin   of 42834
 
Lars,

Let me first say that I am not in the securiries industry.

Secondly, I believe Brinker's show has a tremendous benefit in that regardless of what opinion I may have of Brinker he does a great service to the average invester. He has been one of the few financial industry people who is truely interested in educating the public on many issues.

My problem with him takes place at marginal.

In regards to your questions of my first post:

1. My questions to Brinker"s screeners had to do with the week's prior down move and on a second day was in regards to his views on a possible conflict of interest by recommending investing in mutuals almost exclusively while at the same time 90% of his advertisers were mutual funds.

2.My comments about him taking vacations when things got messy should have been made in more detail. I purposely used the word "often" and not "always". I have noticed over the years that he often is on vacation when the prior week was particularly eventful in a negative sense. It was not my intention to convey a message that implied he would take a vacation for any market other than a straight-up market.

Frankly, I was shocked when I heard his voice on the radio last weekend and lost a bet with a frind over it. The last time I can remember this happening was when he went to visit the White House to take a tour (2 months ago?).

3.Regarding the topic of sell signals.

I have heard him on many occassion comment on this. He has never straight out told the listeners to keep their mouth's shut. What he often does in true Brinker fashion is usually answer a question with a question when he does not want deal with something.

Brinker has a second conflict in regards to his newsletter. The radio show came first and that is how he has been able to build his subscriptions to his newsletter. Is the purpose of the show to sell newsletters? Is his loyalty to his sponsers, his listeners, his readers or his money management clients? It is difficult to maintain a loyalty to all at the same time. His sponsers buy air time which puts him on the air. His listeners tune in thereby giving his sponsers what they want. Brinker now is able to pay his salary and at the same time build a subscription base. If not for the listeners nad the sponsers he would not have a newsletter. His money management clients are even higher up the food chain.

Your question to me about brinker losing "validity" goes to the core of my post. How can he not lose "validity" with one or more of the groups I mentioned. He made it clear on numerous occasions his subscribers come before his listeners he clearly stated it was because the subscribers paid for their subscriptions. The caller then made a comment to the effect that his policy was not proper. Brinker then ask the caller the following question: Do you think it's fair I announce it on the radio when the other's (subscribers) pay for a subscription.

This is why I say Brinker can't help but lose "validity". He cannot service all four groups I mention above in a way that will make all of them happy. At least one group has to be unhappy and he has clearly shown it to be the listners that put him where he is.

Let me once again say it is my opinion that for "Joe Sixpack", as Brinker affectionetly puts it, he does a tremendous service.

I am at the point in my investment education where he has little to offer me and perhaps this is why I am jaded. However, I will continue
to listen because I get enormous insight into the overall market sentiment through many of the questions the listeners ask.

Please forgive my spelling and grammer as I typed this with one hand on the keyboard and one foot out the door.

p.s. Did you ever here the story about the two horsetraders? They kept trading the same horse back and forth to each other at higher and higher prices until they both became millionaires!!

In the end it boils down to who is left without a chair when the music stops.

KM
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