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

To: Tim Bagwell who wrote (22059)	7/27/2005 7:23:30 PM
From: E_K_S	Read Replies (1) \| Respond to of 42834

Hi Tim - Excellent observation on the lesson learned. "...The smart investor considers the effect that risk has on the portfolio. Because of the beta, an investment in QQQQ must have significantly higher gain than the Wilshire 5000 or it becomes a bad call and lost opportunity...." Now, If Brinker states this on his radio show (your analysis is a good one too), I think he would teach a good lesson to all investors...."everybody makes mistakes and you can learn from them too!". I have been investing for over thirty years and am always learning new things. One of the most difficult things to quantify in investing is risk (both company specific and market risk). The Beta statistic is a good tool but it can (at times) deviate significantly from it's trading band. Brinker just got caught in an unusual spike and did not have an exit strategy until the damage was done. EKS