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

To: Skeeter Bug who wrote (28430)	5/23/1998 1:19:00 AM
From: Michael Burry	Read Replies (1) \| Respond to of 132070

they performed beautifully last year but have been stagnant since. This relates to why I am so in wonder about this market. Actually, I have had an odd year this year. The portfolio that I run on my website (which is a real-money trust that I manage but isn't mine) was up nearly 20% through March 31st. The S&P was up just over 13% at that point. But I had virtually no correlation on a daily basis. Averaging about 10 stocks long in the portfolio, I would see my portfolio up 1% on days the S&P was down, and my portfolio down 1% on days it was up. At the end of March I advised the owner that it would be wise to pay off the 9% mortgage after the last good few years. I told the owner that a 9% after tax guaranteed was better than anything that I could guarantee in this market, and we liquidated a large portion of the portfolio. The portfolio up now is my portfolio, and it just started running on May 19th. It started all cash because I had been planning to pay off my debts with it, but decided to put half into the market. I'll put up the old portfolio page that I had up at the end of March to illustrate the previous paragraph. In any case, this is why I wonder about where the overvaluation is, and wonder if the entire market needs correctiong. While I am very contrarian naturally, I just haven't experienced a problem finding undervalued stocks over extended periods of time. That said, in a true bear, even the innocent bystanders (value stocks) will get killed, so I must pursue the question of the market's value. This is where my youth hurts me - I can only read about the past, but don't have the experience. Good Investing, Michael Burry