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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (96547)	7/6/2002 11:19:28 AM
From: Mark Adams	Read Replies (1) \| Respond to of 132070

Joan, I'm down this year. Not alot, but enough to make it difficult. I expect a certain amount of drawdown, and I'm approaching that limit. With so few rallies, it's been harder for my 'long only' style than the previous two years. Been adding exposure long during the past few weeks. Got way overweight in the IPPs, which has proved a disaster thus far. Still thinking the market is irrational, still thinking I ought to be buying more. Almost took a first third in GE weds. But didn't. I did close out my tiny GNMA position July 3rd, at near breakeven, expecting interest rates to start rising. Basically collected a 5.75% rate over 8 months or so, a 2% premium or so over what the bulk of my cash is earning. I don't think the downside risk is worth the premium any longer. In light of the FIG released friday, and the rally, and the CRB, it's looking like deflationary influences will decrease over the next 18 months. Still holding my tiny position in Vanguard High Yield (at a near 6% loss thus far) and Vanguard Intermediate Corporates. Not enough faith in a better future to add to the High Yield though. So- to answer your question, I've not got any specific gems, am taking on more market risk as we move down, and am becoming more reluctant to 'sell the rally'.