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Strategies & Market Trends : Z PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: Kelvin Taylor who wrote (7789)	8/12/2002 7:38:00 PM
From: DanZ	Read Replies (1) \| Respond to of 11568

You're right, Kelvin. But if you sell stock A for a small loss, and buy stock B, and sell that stock for a small loss, and buy stock C, and sell that stock for a small loss, and buy stock D.... it doesn't take long before the sum of the small losses equals the big loss on stock A. The only thing that this proves is it is very difficult to make money when you buy stocks during a bear market as bad as the one we've had. Taking small losses on stocks works well in a market that doesn't go to extremes in either direction. The only way that we would have been better off selling the stocks that are down 40% to 50% is if we had shorted stocks or not bought anything with the proceeds. It is interesting that there has been very little shorting in this portfolio over the last two years, so obviously none of us thought the bear market would be as bad as it has proven to be.