Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: jbe who wrote (22707)	5/22/1998 8:48:00 PM
From: MonsieurGonzo	Read Replies (2) of 95453

jbe; RE:" Holding nothing but indices..." I really think that's a great way to invest, jbe. There just ain't many ways to beat DIA, SPY and the WEBS for any length of time. Beats me why there are so many mutual funds, man. I read an article in the International Herald Tribune at the end of the quarter and the SPDR and WEBS beat the hell out of just about all the professional money managers; it was even in the top 10 ranking in many countries' funds. I just ran a bunch of scans of foreign ADR's traded in US $ on our exchanges to see what would beat a WEB in my little DIA/SPY/WEBS portfolio ( which is up almost 30% YTD so far ;-) and in particular, I was testing to see if telephone companies, often used as a "proxy" for trading a foreign country's stock exchange ( like, you think Indonesia will pop when Suharto quits, so you buy IIT or TLK ) and EWG beats out DT, EWQ beats out FTE and ALA, etc. But it does look like BCE beats the hell out of investing in EWC Canada; NECSY is tremendous compared to EWD Sweden; and CWZ or BTY are doing better than the EWU U.K. FTSE "footsie". Some of my trader friends over here in Europe leverage an index by buying deep, in-the-money index LEAPS on the DAX-100 or CAC-40 and that amplifies gain more than owning EWG or EWQ. There is an old tradition of doing something like taking 90% of your capital and buying something like SPY, then taking the remaining 10% and buying S&P-500 CALL options (" spoos ") or OEX-100 CALLs ( "oysters" )... ...the rationale being that if your options screw up, you will break even anyway because your 90% SPDR will make 10% in one year ( or something like that ;-) Try comparing your mutual fund with (SPY) the S&P-500 on Yahoo or something, and it can be a sobering experience (^_^) -Steve

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