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

To: Liatris Spicata who wrote (14121)	2/16/1998 3:30:00 PM
From: Bonnie Bear	Read Replies (3) \| Respond to of 94695

Larry, Bill: sooner or later the baby boomers will demand yield, not growth, out of stocks, Bill may be right about utilities. Electric and telephone companies are the places that will profit the most from the internet, global demand will skyrocket, consolidation will boost stock prices. It seems insane to buy into this market but I found a couple of closed-end convertible funds that have wonderful portfolios and sell at discounts, it might be much saner to buy convertibles than stocks. You might want to take a look at this. I've been sitting mostly in cash but I'm with Bill right now, I'm quietly rolling some money into utilities funds, smallcap real-estate investment trusts, corporate convertibles and microcaps. If interest rates stay parked where they are these should all do nicely. None of them will lose very much if interest rates go up.

To: Liatris Spicata who wrote (14121)	2/16/1998 3:45:00 PM
From: Mike McFarland	Respond to of 94695

I'm just going to try and make a statement against dollar cost averaging. I have no true heartfelt convictions about it, as far as I am concerned the whole investing thing is for entertainment, and if you need money tomorrow the best way to have it is to not spend it. Anyway, here goes; Dollar cost averaging is just something money managers say to folks to put them at ease. Dollar cost averaging relieves you of the pressure of having to make a choice. If you feel the market is insanely overvalued and will correct, then for god's sake sell! There ARE alternatives, spend less and save for your future, learn to live with less etc. If you don't think the whole thing is a Ponzi scheme, then, by all means if you have the money, the best time to invest is NOW. Put your money in something you have researched and feel comfortable with, and let it ride! Waiting and averaging in won't get you there any faster. And so what if you are wrong? You made an effort and at least you tried. Dollar cost averaging is giving up because you don't know what to do. Everybody who is averaging in now is going to kick themselves after they watch the DOW repeatedly go from 7000 to 12000 over and over and over again over the next twenty years. You won't get any ten baggers that way!

To: Liatris Spicata who wrote (14121)	2/17/1998 2:12:00 AM
From: paulmcg0	Respond to of 94695

[May I suggest with your liquidity that you start dollar cost averaging?] Some of the liquidity has to go to the IRS, in the form of capital gains taxes... I don't agree with the concept of dollar cost averaging - it seems to be something the investment industry cooked up to keep a constant stream of income coming in. It also goes against the basic investment modus operandi of "buy low, sell high". I'd really like to see an academic study, from reputable sources not connected with the investment industry, that shows that dollar cost averaging provides a higher long term return than not averaging. Paul McGinnis