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Strategies & Market Trends : Stock Mania ! - Mutual Funds that can short. -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (33)	5/2/1998 6:20:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 129

Fred, My answer is real simple. As a portfolio manager who does exotic strategies, I have always beaten the crud out of indices. And there is a lot of crud in them. <G> Of course indexing is in the vogue. So are momentum funds. That does not make them a good thing. I think it comes down to whether you think a portfolio manager can beat the market or not. I believe most can't, simply because they ARE the market plus fund expenses. But some can. Hire them. As a contrarian, I have made a nice living by ALWAYS fighting the trend. But you are right. For the brain-dead unsophisticated investor, like an Intel, indices are ok. The problem is, then the unsophisticated investor is making the allocation decision, something he or she is not qualified to do, either. That leads to disaster, too. BTW, indices outperform in steady up markets like the one we have had for the past seven years. But the strategy only works in that type of market. Nobody thought much of them from 1968-1982, when you lost 70% of your purchasing power by buying the S&P 500. Most seemed to think John Templeton did a better job. <G> Good Luck, MB