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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (27316)	4/10/1998 11:57:00 AM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

GD, I agree with most of what he says, but he does make a couple of points with which I disagree. First, he makes no mention of valuation at all. Doesn't matter, for some reason. Also, in 1987, the big problem was portfolio insurance, not put selling. Different concept. BTW, selling puts and buying calls is also known as buying synthetic stock. Buying stock at prices that are too high is always the problem, whether the stock is synthetic or straight. He seems to be saying to keep buying tulips until we see the crash as being imminent. I disagree with that. The downside will be too large for fooling around. It's like drilling for oil on 3-Mile Island. Once you hit radioactivity, the odds are good that you are already cooked. -g- MB