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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Rick who wrote (22968)	4/17/2000 8:27:00 PM
From: Rick	Respond to of 54805

Apparently, there are only 2 market strategies: Momo, and value. In which case, what's one to do? newsweek.com "Wave The Bubble Goodbye" "The party's over for the highest fliers. Here's how to find life after market death. Think value investing." By Jane Bryant Quinn Newsweek, April 24, 2000 "Over the past 10 years, investors have fallen into the mass delusion that stocks are safe. That is, safe when held for the long term, with "long term" redefined. Just staying in stocks (while trading) seems long term to some. Others expect their options or blue chips to hand them retirement on a platter. No matter that the Nasdaq bubble finally burst (last Friday, it spattered everything in sight). The battle cry for the week is: Remember 1987! Surely, our faith can raise this market from the dead. Well, I dunno. Not all stocks are Lazarus, and not all lottery tickets win. Among the older generation of powerhouse stocks, some of them paid (General Electric, Intel) while others died (Zenith, Pan Am). "Hold for the long term," as an answer to every investment question, is a mass delusion, too. Many changes could strike the markets in the months and years ahead. For example, maybe double-digit growth has gone away. If so, you'll have to save more money than you thought for college or retirement. I'll bet you $10 and a dinner that today's most-admired stocks won't do as well in the future as the market overall. It's time to look into stocks that haven't been run up. Momentum investing?buying into rising stock?will still be the mouse-clickers' favorite game. But it's likely to be harder to bid prices up. Newbie investors are getting burned in this Net- and tech-stock crash, and won't be so willing to charge ahead. In the market, everything comes back?so you might bone up on value investing (buying stocks that have been beaten down)." - Fred

To: Rick who wrote (22968)	4/17/2000 9:28:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

I'm a long term student of the market and G&K investing, and today Mr. Market gave us another important lesson: Our G&K Index gained 12.7% today, which compares to a 6.6% gain for the nasdaq (compx). It's clear that the money flow was to quality stocks with proven earnings potential - our Gorillas and Kings! We had theorized that this might happen, but today's action provided empirical evidence. The G&K Index has returned 6.4% YTD compared to a 13% loss in the compx. I think we may be on to something good <gg>. uf

To: Rick who wrote (22968)	4/18/2000 12:06:00 AM
From: tekboy	Read Replies (1) \| Respond to of 54805

a suggested addition for the next version, to the "definitions" section: Margin = the investor's version of Russian Roulette. The more you play with it, the more you risk having to liquidate your holdings at the worst possible time and incur permanent, quite possibly irreparable, losses. Carrying large amounts of margin, like holding large quantities of short-term options, makes it impossible to sleep or hold through downturns (which always occur, and which hit gorillas along with everything else). These approaches are thus incompatible with gorilla gaming. tekboy/Ares@dowhathesays,notwhathedoes.com