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

To: Math Junkie who wrote (12463)	3/14/2000 3:26:00 PM
From: Kirk ©	Read Replies (2) \| Respond to of 15132

The critics with capital letters. I don't follow that site carefully enough to know adam from eve but THOSE clowns take a Phd in head shrinking to really understand. 8) We had a few guys like that on our site but we chased them away or they got bored with us. You have to admit that a BIG part of Bob's show is his making fun of those that do not see the World the way he sees it so it makes sense that this type of person will be attracted to his site. I get a kick out of the ones there that seem to be rooting for the market to go down even as they hold 40% in stocks and many are holding high p/e stocks (TEFQX has ORCL, SUNW, CSCO, ARBA, etc. as top holdings). My understanding of Bob's call is it is/was capital preservation in times of uncertainty but it seems to change a bit from week to week from "100% out is fine" to "you can keep your 40% in the sector of the market that has sky high p/e but get the rest out so you have something left should those stocks crater.". BTW, I published an interesting calculation the other day. My portfolio was up 25% from the day Bob's call was made. I keep it around 80:20. Lets say it started at $100K with $20K cash/bonds and $80K stocks. The WHOLE portfolio went up 25% so I had $125K. I then sold $5K Friday (lucky timing to sell some AMAT and LRCX last Friday) to get back to 80:20 meaning $100K stocks and $25K cash/bonds. NOW lets say the market goes down 30%... My $100K goes to $70K and I have $25K in cash which would show the total STILL be up 5% with 10% available to put into stocks when I decided to rebalance to 80:20 (I often do it in stages). This example shows how well profit taking allows you to stay highly invested and still have good downside protection. Of course, if LRCX and AMAT et. al go back to 1998 levels... I am cooked! 8)