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To: Chris who wrote (6186)	2/18/1998 1:15:00 PM
From: Skipperr	Read Replies (1) \| Respond to of 42787

Chris - I can't quantitatively define "overdiversification". My goal is maximum appreciation, with minimum risk. Volatility (Beta)to the upside is good, to the downside is bad. My practical experience is that I want to be invested in a maximum of only 3 funds at one time. Each fund has a manager who is buying numerous stocks. Analogy is if I want to get to the moon, I jump on the fastest rocket. I can only jump on one at a time. When acceleration slows, I jump on the next. If I keep jumping on lower-flying rockets, I won't get there. With sector funds I limit myself to be invested in only three at once. I use a model comprised of 3 sub-models. Each sub-model has 2 noncorrelated funds + money market fund. I could be 1/3, 2/3, or fully invested at any one time (or completely in MMF). I have added an intermediate to long-term market timing element. It is "in" now. Both combined are termed "Tactical Asset Allocation". Because I can be away from the market for days, I've had to come up with an investment plan for my wife to follow while I'm gone. She has other interests and cannot/will not watch the market as closely as I would if I were able. Presently, I am working on a multi-fund model, similar to the sector model above, for my 401(k). Best regards, Skipperr