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To: MonsieurGonzo who wrote (22648)	5/21/1998 11:39:00 PM
From: jbe	Read Replies (1) \| Respond to of 95453

Re: Equities vs. Indices. MonsieurGonzo, you have added a whole new dimension to my thinking, for which I thank you. I found what you had to say very, very interesting. I had originally been thinking in conventional terms: stocks vs. funds. But as you point out, there's a whole new world of "investment instruments" out there. I don't understand it very well, but will certainly look into it! First, however, some questions. 1) I own some index funds(US and European) some sector funds, and one country fund (Portugal), but no indices. What are the advantages of the indices, compared to these various kinds of funds? 2) To be more specific: are the sector indices you are talking about like Merrill & Lynch MITTS (about which I just finished reading an article written last summer). The advantage of the MITTS (market index target-term securities) is that if you buy one for $10, say, and two years later, when your MITTS matures, the value of the underlying index has risen to $30, you get the $30 plus a premium. And if it falls below $10, you get your original investment ($10) back. All upside and no downside! Not that there are not some drawbacks as well (like taxes on "phantom interest"). Is this the sort of thing you have in mind? I suspect not, given the fact that you referred to your OSX "calls." Calls? Puts? I have no experience whatsoever with the options scene, so you lost me. Or are you buying "futures" (whatever they are)? 3) Similarly: country WEBs. Are they like the MITTS? Or are they more like an index fund? If the latter, why is it better to have a WEB than a country fund (most of which, after all, sell at a discount) or, say, Vanguard's European Index (bless its heart, it saved my bacon this year)? (I realize I'm repeating my question, but, what the heck, it's late.) 4) As you can see, I am eager but ignorant. So if you know of any websites/books/articles/newsletters/whatever that deal with this whole business of trading in sector & country indices, I would very much appreciate your recommendations. Best, jbe