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Strategies & Market Trends : Charts With An Attitude; Trading In & Out -- Ignore unavailable to you. Want to Upgrade?

To: Dave H who wrote (3884)	11/20/1997 10:16:00 AM
From: Esteban	Read Replies (1) \| Respond to of 4701

Dave, Thanks for your effort comparing the POW performance with the various indices. Hopefully you can do the same near the end of the year if we have a strong market and the pendulum will have swung. I think it's important for everyone to realize that most of the POWs are small cap growth stocks and are high risk. I think this is the first correction we have experienced since Doug started this thread, so for me at least, this is unchartered territory. The overall market environment may be more critical than we thought for the POWs to perform as a group, despite the individual merits of each company. Small cap growth stocks made a great run as a whole from April to October. And the POWs outperformed that group by a wide margin. The conclusion I draw from your data is that we need to keep a close eye on the market as a whole, or else strictly invest with a long term time horizon in these stocks. I've noticed that none of the POWs that I'm following have jumped out of the gate during the early stages of the market recovery, so there seems to be plenty of time to step aside and reenter when the market conditions are right. BTW, I only began accumulating POWs shortly before the correction began, and picked up most of my holdings afterwards at what I thought were great prices. Hasn't worked out so far, but I'm still optimistic. Esteban