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Technology Stocks : Vitesse Semiconductor

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To: BWAC who wrote (4187)8/15/2002 2:31:32 PM
From: OldAIMGuy  Read Replies (1) of 4710
 
Hi B, Yes, that is a bit troublesome. It would be interesting to know how "high" VTSS rose on a capitalization basis inside the S&P500 during that time. Was it ever very far from the bottom?

<ot>
This year I've started to convert some of my portfolio to index funds, so count me as one of the folks who do such things. My wife is no stock picker. However, I can get her to occasionally look at the index funds and make the necessary adjustments as far as the Equity/Cash ratio goes in her account.

So, to make her life simple as well as eliminate any friction, I've converted much of her account to Exchange Traded Sector Funds. This gives each its own cycle on which we make some money trading. It also eliminates her need to out guess which stock is the best one to own.

It was the conversion of diversified (managed) funds to this idea that was most appealing. Her diversified funds chose what sectors in which they wanted to invest. However, not every sector is moving at the same rate or in the same direction as all the rest. This tends to stabilize the fund, but eliminates the volatility that the management method I use needs. So, it seemed to me a great idea to break down what was essentially a diversified fund into its various industrial sectors and then, through the ETFs manage each one in its own cycle.

I'll get back to you in about 10 years and let you know how it worked!!

Best regards, Tom
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