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

To: paulmcg0 who wrote (16860)	4/19/1998 4:05:00 PM
From: Tommaso	Respond to of 94695

I am debt-free too, except for what remains of a mortgage acquired over twenty years ago, which I could pay off any time. I do think that I would use margin again if the market ever became the bargain it was in the 1970s. Yields equal to P/Es were easy to find. What I mean is, one could easily find a stock with a yield of 6% and A P/E of six. I bought Royal Dutch at a P/E of three. I used all the margin I could get to buy closed-end funds (Central Securities, Source Capital, Baker Fentress) that were trading at discounts of around 20% below those already incredibly low prices. My capital more than doubled between 1982 and 1984, and margin made that possible. But I had very wide diversification with the closed-end funds. It remains to be seen if diversification on the short side using BEARX and shorting SPY works out. As to the results so far, all I can say is that it's a hell of a good thing that I have a defined-benefit pension plan.

To: paulmcg0 who wrote (16860)	4/19/1998 4:42:00 PM
From: James F. Hopkins	Read Replies (2) \| Respond to of 94695

Paul; The bigger crashes always have debt that can no longer sholder the interest payments..that's more a key to it than over valuation. Interest is like a TAX but it's charged by the system. It effects us all even those like yourself with out debt as that interest is passed on in the goods we have to buy. The gov gets blamed fot it all , but the gov is only a part of it many of the biggest corporations all have steep debt, they leverage the debt if they can borrowing at one rate and lending out at another. Our Banking system is for the most part on the dole supported first by Tax payers not depositors as it gets cheap money from the Gov..that it leverages out. --------------- GE don't just make products it's also a financial giant that lends out tons of money..and carries more debt to assest in a ratio greater than the Gov..how long the TAX payer can support this I have no idea but it's a real nightmare if you look inside it. The whole system is like a huge Pyramid scam, with big multinational financial gorillas and Insurance companies at the heart of it and pulling the strings, and when it does fall they grab the money and run for santionary in back up systems they have reserved just for the elite of their members. Like any pyramid scheam only the ones at the top of the tier wind up with anything when it comes apart. If you or I start a pyramid system we get in troble, it has to be huge to get respect..and the one that hovers over us does not like compitition, you can play in that one by it's rules but don't start another one. <G> Jim

To: paulmcg0 who wrote (16860)	4/23/1998 3:54:00 AM
From: nommedeguerre	Respond to of 94695

Paul, >>I have no debt either (no mortgage, no car loan, no credit card debts, no student loans). Debt limits your freedom!! Sounds like a Peter Fonda film quote to me. I also have no debts and keep almost half of my retirement funds in health-care related portfolios. My logic being that if there is no severe crash then the aging of the nation insures decent growth in this sector for a long time. If there is a crash, the resulting stress-related illnesses and victims of violent crimes will buoy the health-sector through the crisis. Cheers, Norm