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To: Investor2 who wrote (3123)	1/28/1998 2:58:00 PM
From: Thomas M. Carroll	Respond to of 42834

You have to keep a little, just a little, for individual stocks. If all you do is index funds, where is the fun, where is the action ?? Keep the "fire in the belly." That's what keeps you alive !!!

To: Investor2 who wrote (3123)	1/28/1998 5:17:00 PM
From: J. P.	Respond to of 42834

<Actually, I am thinking of moving almost completely into index funds, SPY, etc.> In my opinion SPY is the best bet. It's common knowledge that the SP 500 beats 80% of funds, and the few it doesnt' beat are either concentrated sector funds or funds that if you account for loads and mgmt fees, don't really beat it by much, and will likely not beat the SP 500 in the following year. SPY has the following advantages over SP 500 Index funds: 1) Can buy it intra day 2) Load is only the Commission (which can be as low as $9 with some discount brokers, as compared to the $35 that vanguard charges for it's SP 500 fund.) 3) You can hedge SPY with options. 4) No capital gains from portfolio turnover in SPY as there is in an index fund. 5)Probably more that I can't think of right now! Just something to think about.....Good luck