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

To: Kirk © who wrote (22030)	7/10/2005 6:57:48 PM
From: David Bogdanoff	Respond to of 42834

The problem with ETFs based on market capitalization is seen clearly in the QQQs but holds for all such ETFs. An ETF or Index fund based on market caps systematically overweights the overvalued stocks and underweights the undervalued value stocks. I saw a discussion on one of the financial news programs on this very point. The interviewee was promoting an alternative weighting system. Don´t remember what is is though. Bogtalk

To: Kirk © who wrote (22030)	7/12/2005 4:24:55 PM
From: Tim Bagwell	Read Replies (1) \| Respond to of 42834

Kirk, you make a great point. LRCX, of course, was a risky bet to make in place of QQQQ back in October 2000. Along that same line, it's interesting that DJIA stayed relatively strong out until 2002 and there were CTR's and opportunities to turn profits along the way. This is why I think the DIA makes the best ETF for trading when you need to moderate risk. Had Brinker stayed with quality he would have certainly done better. The fact that he hasn't recognized this and used this reason as an excuse for the QQQQ disaster further weakens his case.