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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (2150)	8/20/2001 2:49:19 PM
From: Uncle Frank	Respond to of 5205

>> And going beyond that to the logical conclusion that if you buy the basket you achieve greater stability at the expense of any opportunity to skew your returns to the plus side. One of the leaders of the Dell thread dubbed that phenomena, deworsification. If one's goal is wealth accumulation rather than capital preservation, a high degree of concentration is indicated. duf

To: Dan Duchardt who wrote (2150)	8/20/2001 9:19:32 PM
From: Wyätt Gwyön	Respond to of 5205

hi Dan Duchardt, i think we ended up talking about two slightly different subjects. an easy thing to happen online, LOL. i am very familiar with the idea of trying to outperform the S&P, since that is what all the people on Bubblevision obsess about, and is what most individuals on a place like SI are presumably trying to do as they stick with individual equities. i have no problem with that. I have not read what you have read, and I will concede there might be something to it that I am not grasping. i think the asset allocation idea i'm talking about is significantly different from what most people on SI are trying to do (and it is also significantly different from most people's idea of indexing, which is simply to buy the Vanguard 500 index). i may not have done a good job of explaining it, so i will refer you to an excellent online primer here for further info>> efficientfrontier.com also be sure to check out this excellent online journal (free)http://www.efficientfrontier.com/ef/index.shtml>>