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To: Seeker of Truth who wrote (43865)	6/25/2001 12:47:53 AM
From: BirdDog	Read Replies (3) \| Respond to of 54805

In stock terms, we may lose our shirt in one stock but if we diversify we will experience some average long term gain. Is this your point? No it isn't my point. The best way I can put it based on your sentence is: In stock terms, we may loose our shirt on all our companies, but if we use technical analysis, we can avoid these bad downturns in the market like we have now. And we could even use these downturns to our advantage, and be better off than we were in 3/2000, instead of the loss we are now experiencing. I think you'd be surprised at how well TA can give us an idea of where a stock/market is headed. But we must remember to think in terms of quantum physics...not simple cause and effect. Because it's just plain too complicated for cause and effect. BirdDog

To: Seeker of Truth who wrote (43865)	6/25/2001 1:00:15 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Malcolm, The question about diversification that you asked BirdDog reminded me of one part of my conversation with the assistant manager at Fidelity. He explained that in late 1999 and early 2000 he advised his clients to move some of their holdings from high-tech to bonds, "old economy" blue-chip stocks, utiliy stocks, and the like. Not missing a beat, I responded, "In other words, you advised your clients to move their investments from companies that had sustainable, competitive advanatages to those that don't, right?" He got a concerned look on his face and said, "I have to admit that you're right." --Mike Buckley