To: ynot who wrote (6742 ) 9/13/1999 12:29:00 AM From: MonsieurGonzo Read Replies (2) | Respond to of 11051
ynot:" whatnot " >by the way is there an url specific to SPU SPZ education ? ...ask these guys:Subject 8128 >have you looked at QQQ:SPU ? ...SP99_ futures and SPY, ~SPX.X cash index = tous la meme chose . FWIW I keep a chart of SPY+ NDX, called "SPYNDX "...geocities.com ...it measures/charts the performance of a portfolio where you bought 50% SPY and 50% QQQ and held it since the beginning of the year. The chart was scaled in such a way that the values for SPY and QQQ were each made equal to "50" at the beginning of 1999; thus, their sum = "100", and a value of ~121.5 on CLOSE last Friday means that your "SPYNDX" portfolio has gained 121.5 minus 100 = ~21.5% YTD. I call this SPYNDX portfolio strategy the "BigEasy" (^_^) ...it minimizes specific risk but, has the effect of double-weighting any stock that exists in both the NDX-100 and S&P-500 index; Thus, most of the large-cap TechStocks in NDX-100 are double weighted - meaning that SPYNDX = "BigEasy" portfolio assumes TechStock sector risk . I've been studying SPYNDX = "BigEasy" this year. It is damn difficult to beat without assuming ( a lot ) more risk. But it can be done... One way is to substitute the OEX-100 index for the 50% SPX-500 "SPY" component. Right now, we don't have a convenient OEX.X - "oyster " stock vehicle like SPY - spyder but, there exist index funds that are OEX-100 - based, which could be used. This construct performs a little better - by assuming not only TechStock sector risk but also LargeCap sector risk . Another way to beat 50:50 = SPY+QQQ old "BigEasy" is to substitute the index's bellwethers GE + CSCO . By assuming specific risk , this portfolio has a greater reward but, it is a lot more volatile - as well as vulnerable - than pure SPX+NDX or OEX+NDX index-based constructs. But GE+CSCO has out-performed OEX+NDX has out-performed SPX+NDX over the last five years, fwiw. So, I have "back-tested" these three constructs for 60 months. In one simulation, I assumed an estate consisting of ~$650,000. invested in bonds with an annual yield of ~7.5% which is the same thing as generating $4,000. every month available for investment in "BigEasy". It turns out that simple, periodic monthly investing of ~$4,000. into "BigEasy" = SPX+NDX works best when done in the (middle of the) third week of every month , fwiw. -Steve