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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Warpfactor who wrote (12771)	3/7/2002 3:26:49 AM
From: LK2	Read Replies (1) \| Respond to of 23153

RE: Beat the market. "Beat the market" usually means to outperform the stock market. There are many ways to try to beat the market: Market timing: increasing or reducing your exposure to the market depending on whether you are bullish or bearish. Sector weighting, or sector rotation: being overweight or underweight in those sectors/industries/groups you think have the best chance of moving up or down, with risk-reward or other factors thrown in. Individual stock selection: picking the best stocks to own. Regional selection: investing in different regions: sections of the US, international, emerging markets, etc. Capitalization: Small-, Mid-, Big-cap Style: value versus growth. And probably a whole bunch of other ways to try to beat the market. Regards, Larry

To: Warpfactor who wrote (12771)	3/7/2002 2:04:56 PM
From: geode00	Respond to of 23153

There are many people who can "beat the market" consistently. I assume that "time the market" carries a different meaning than "beat the market"?? The 65% equity to cash reallocation that Bob did in January 2000 was the sell. He has yet to issue a buy. If this rally holds significantly above the September 21st lows, it will be interesting to see the difference between returns in a well diversified portfolio and "market timing" as practiced by Brinker. This is interesting: suite101.com The thing is, the Nasdaq is down huge since then, the S&P is down also but the creaky old down is down just a bit. Factor in capital gains (or regular income) taxes paid in 2000, and it's debatable if all the worrying is worth it. This is why Bogle and others say that market timing is bogus. It's an appealing idea but you have to be able to time both the buy and sell accurately plus account for taxes, risk, etc. Of course if you can actually time the market, you don't have to waste your weekends with people who don't know what their mutual funds own <g> I think the only mutual fund that has beaten the S&P for 10 years (beaten it every year for 10 years) is the Legg Mason fund run by Bill Miller.