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To: Berney who wrote (2255)4/13/1998 10:55:00 AM
From: MonsieurGonzo  Read Replies (1) | Respond to of 11051
 
Berney; RE:" Allocation "

>You still didn't tell me how you came up with the international
allocation scheme...


...it was simply 100s of SPY + 100s of each WEB, Berney; the scheme was one round block of each instrument.

Janko was musing about a portfolio consisting entirely of index options the other day, and that inspired me to look into a SPDR+WEBS scheme in the first place.

Putting SPDR+WEBS in one of the web-based portfolio generators (like Yahoo or MS-investor, etc.) with 100s bought on 02-JAN-98 is an easy way to scan the performance of the world-wide stock markets.

You still didn't tell me if DRIPs are income-taxable {grin} if the dividends are automatically plowed back in to the equities they were derived from. SPDR+WEBS generate dividends based on their underlying index components.

It would be interesting if we were to re-calculate the performance of your model portfolio (or SPDR+WEBS) based upon some percentage of it being leveraged with LEAPs on the underlying, say - take 5.2% of the capital (or the equivalent dividend yield of the underlying) and use it to buy JAN2000 LEAPs or far CALLs.

Good griefers - now I've just gotta make another spreadsheet !

-Steve