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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: LindyBill who wrote (22138)4/3/2000 8:53:00 PM
From: BDR  Read Replies (2) of 54805
 
<<I guess you want to buy insurance against a long term bear market.>>

Correct. Keeping a large chunk in cash is one way but the derivatives market was designed for just such purposes and may be a more efficient way to do so.

While I would like to smooth out the fluctuations during these 10-15% corrections, that implies better timing than I have been able to demonstrate in the past. I am more worried about trying to live off my portfolio and finding myself facing a situation such as that which occurred in 1987 or '73-'74. With a large enough portfolio that wouldn't be a problem but mine isn't. Or maybe it is but I am just not convinced. What is enough depends on each person's circumstances and perceptions.

I am wondering what the market will make of the DOJ action. If the market thinks that the DOJ is going to start to intervene in every sector where one company has a controlling position (threatening the underpinnings of the GG) we could be seeing a lot more volatility and drops in prices.
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