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

To: BGR who wrote (96813)	7/21/2002 7:01:03 PM
From: Simba	Read Replies (5) \| Respond to of 132070

BGR: It is surprising you are still convinced that transfering all your Sp500 money into NASDAQ over a 4 year period is the right thing to do after the NASDAQ has crashed by 75%. SO have you really been transferring all your SP500 money to the NASDAQ the past 3 years. SP500 is up about 80% from Jan 1994 until now (not including dividend), i.e if you invested $1 in 1994 it will be $1.80 now. That is about 8.5 years from 1994. You claim a compound annual 13% for 8.5 years. At that rate your total return comes close to 180%, i.e. if you invested $1 in 1994 it should be $2.8 now. Constant weekly DCA at much higher prices will produce cumulative returns much less than 80%. That chart is correct. All you have to see is how is your invested capital up in total over the entire DCA period. That chart says your invested capital would be up less than 15% in total not including your PUTS hedgind and not counting yout employer investment as SP500 return. The chart says you will have more money if you DCA'd into a 6% yield instrument than into the SP500. Simba