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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: porcupine --''''> who wrote (98)3/20/1998 12:01:00 AM
From: Berney  Read Replies (1) of 1722
 
BAMBI Update

Correct me if I'm wrong, but as I remember Graham believed that one's commitments to the equity and fixed income markets required a consideration of the relative value of each. Of course, Modern Portfolio Theory refers to this as Asset Allocation.

BAMBI attempts to ascertain near-term market direction with the understanding that one should make the trend his friend. BAMBI turned very positive in mid-January and I started posting the results on SI in late January.

Despite a rise from mid-January that has exceeded almost everyone's wildest expectations, BAMBI remains decidedly Bullish. The indicator remains at a very Bullish +10, with 19 DJIA stocks Bullish and 9 bearish (2 undecided). Further, 15 of the DJIA stocks beat the S&P, decidedly ahead of last weeks 10 stocks that beat the S&P.

There is no doubt that this market is frothy. Looking at many of the DJIA stocks requires one have oxygen available, as the heights are indeed staggering.

This week should be interesting as stocks such as DD and GT are bumping up against their 52 week highs. However, others have not even moved off the starting block with HWP up only .7% and IBM actually down 1.7% since the beginning of the year.
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