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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (17508)	2/27/2003 7:33:57 PM
From: Math Junkie	Respond to of 42834

If you can prove that my statement was "crap," please do so. Nothing in your post or in the link you provided even addresses the issue. Do you deny that people complain when Brinker is credited with getting people completely out of the market?

To: Kirk © who wrote (17508)	2/27/2003 8:20:23 PM
From: E_K_S	Read Replies (3) \| Respond to of 42834

Hi Kirk: I have been lurking for several years and remember your post several months back stating Bob's lack of portfolio management specifically with utilizing covered calls to generate income from the QQQ purchase. That would have worked great if Bob had hedged a portion of the QQQ trade with staggered covered calls over time (begining in 3/1/01). Now, I believe is an excellent time to look at selling a portion of the QQQ trade to book a loss with the expectation to buy back the position in 31 days. I have been doing this with my own portfolio over the last 18 months which allows me to lower my average cost basis on several of my core holdings that have gone down in value. I also utilize the long term paper losses to off set several of my long term holdings where I have (1) large capital gains and (2) positions I want to now sell and reinvest into other different depressed sectors (some with gains and some with small losses). For example, I am selling stocks where I have long term capital gains in technology (still over 120% gains based on a 4 year holding period) and buying depressed oil and retail stocks. The strategy I used in booking capital losses (used to lower my average core holding cost) was to sell 1/2 of my position and wait 31 days then buy it back and then sell the other 1/2 and re-establish that one waiting another 31 days. I suppose you could also set up an artificial hedge by selling a naked put out 60 days to cushion any significant up move while you wait for the wash period to lapse. My point is that by just sitting and stating that he can not sell at these levels proves to me that he does not manage his gains and losses in his portfolio. An investor must optimize their (1) tax losses to net out both ordinary and long term capital gains (2) continually manage your average stock price basis for your core holdings (especially on quality companies that you want to continue to accumulate) and (3) rebalance the portfolio with different equity groups to shed some of those groups that are overvalued and pick up new shares of companies that are hitting multi-year lows and are now quite undervalued. IMO, Bob should be discussing this level of portfolio management so the individual long term equity investor can set up his plate and be ready for either the counter bear rally or new bull market run. Such a strategy provides one possible exit move for the QQQ trade which could be a huge long term positive (by allocating a portion of the booked losses against current and future gains thus reducing taxes) rather than following his current strategy of doing nothing. EKS