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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 342.05+0.3%Jan 15 4:00 PM EST

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To: Boca_PETE who wrote (3277)12/23/2006 11:54:22 AM
From: Kirk ©  Read Replies (2) of 10065
 
Hi Pete

During periods Brinker's portfolios are 100% invested, most who have followed Brinker for a long time realize that Brinker's advice to buy on dips below S&P500 = 1250 know that such advice applies to NEW MONEY AVAILABLE FOR INVESTMENT, not the in and out kind of trading your post seems to suggest.

Lets say what you wrote is true. Brinker currently has, if I recall correctly, a buy level of 1250 on the S&P500.

Lets say you got an inheritance on August 11th when the market was at 1267. The market has gone up since then with no trip to 1250.

Further, lets say you've held that money waiting for 1250 rather than lump sum in at 1267 for a (1411-1267) 144 pts or 11%. A lump sum into the S&P500 at 1267 would be about 10% ahead of money market returns.

Was Brinker's advice to wait for 1250 to use this "new money" bad or good advice?

regards
Kirk
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