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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (7459)	10/26/1997 11:57:00 AM
From: Joseph G.	Respond to of 94695

IQ, one has to look at absolute valuations, and at where we're in the cycle. If SPX were at 400, and it was a couple of years since the cycle bottom, I'd say, go ahead and invest 70% of assets in US equities (and trade if so inclined), even if there is a shakeout due to foreign crisis, it is not going to derail the SPX by much, in other words, downside risk is not great. But, this is not the case now, downside risk is quite big, and the point of the game is not to get every last month or two of the bull and bail out at the top 1/8th - this is not possible to do consistently - but to preserve the capital and be ready for the next time. Joe