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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Rillinois who wrote (5764)7/8/1998 10:05:00 PM
From: Investor2  Read Replies (1) of 42834
 
The following responses are only my guesses and opinions.

Re: "How would Bob define a prolonged "sideways" market? Does Bob's proprietary timing model try to forecast such a market? .... For clarification, I'm thinking of a market that nets returns near 0% for approx. 2-5 years or more."

I believe that Bob's model "looks into the future" only about six months or so. A projection of happenings two to five years in the future would in my opinion be rank speculation; too much can change in the interim.

Re: "If shorting the market or investing in a money market account is the proper action to be taken in a bear market, what would be the proper action to take in a hypothetical "sideways" market?"

For a taxable account, it would certainly be better to hold, rather than take gains, reduce your assets by paying 20% or more of your gains when you pay taxes, and then re-enter the market at about the same level. Also, I believe (and I think that Bob would agree) that short-term fluctuations of up to 4% can and do happen at any time, even in "sideways" markets. These fluctuations would make it hard to get out and back into the market without taking a loss.

Best wishes,

I2
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