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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Diamond Jim who wrote (3633)	2/24/1998 2:27:00 PM
From: MrCash	Read Replies (2) \| Respond to of 42834

RE:Brinker's forecast on Moneytalk was a large cap led rally to new highs featuring special strength in large cap high tech stocks like Microsoft, Intel, Dell, Cisco etc. Last time I checked... but NOT HWP, IBM, MO or ORCL ...??? I actually thought he said it was going to be lead by the S&P stocks including KO/DIS/GE and I got the impression the best play was with the index funds to have all basis covered. Clearly, SOME of the large cap high tech's are leading, but picking the right ones was key. IF one followed Bob's recommendation to buy the total market, then they are enjoying a good run. Then on Sunday a guy from San Diego calls with 85% or so of his assets in HP stock options (he didn't say this, but I know the numbers and it fits) and Bob said to not diversify into the S&P500 or total stock market but to hold and sell later (these 10yr options expire soon if they have a basis in the $10 range). This actually nearly floored me! The guy would take a tax hit in a yr or two anyway and it would seem prudent to dollar cost sell over a few yrs to diversify rather than wait unless Bob really thought HP and other "Fortune 50 High Tech Companies" would greatly outperform the total stock market represented by VTSMX. Clearly, I am confused as I too need to diversify from the same large cap high tech company eventually. It is on the "Flat for '98 List" so far and yet I gather Bob says wait. Interesting. Am I missing something in reading Bob's advice? thanks Kirk out