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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (6214)	6/23/1999 1:06:00 AM
From: Kirk ©	Respond to of 15132

Actually, if you know that you are in a bull market, then you should own high beta or high growth stocks... you make more money that way! 8) Conversely, if you know that a bear is about to begin, then you should be in a low or zero beta stock, sometimes called "cash". (or even go short) My trick on the growth in a bull market is to look for undiscovered growth potential in value type stocks when nobody wants them.... See David Dreman's "Contrarian Investment Strategies". Others use the strategy in an "up" market of buying stocks moving up and use trailing stops then when the direction switches, they go in the reverse. Not my style, but I know of some that make good money doing this. I still prefer looking for GARP - Growth at a Reasonable Price. The p/e of my portfolio is probably about that of the S&P500 so I am not sure I have that much extra risk.... again, the value basis give protection on the downside and the contrarian allows you to get better returns. Your mileage may vary, but it seems to work for me. 8) Lastly, many pooh pooh people getting better than index fund returns but if it were that easy, then many more mutual funds would do it. I was also quite "amused" that some of my funds with the lowest performance took as big a hit as the good funds in the Fall of '98 correction. regards Kirk out