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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Al Serrao who wrote (3843)	6/19/1998 9:27:00 AM
From: Mr. BSL	Read Replies (2) \| Respond to of 34818

Hi AL <If 80% of the risk when buying a stock is market and sector risk. Then why bother to take on 20% additional risk on an individual issue when a sector fund or index is available? When the semis turn why not just buy the SOX instead of INTC, TXN, MU.etc? Who needs more risk?> I agree that if a pure mutual fund or index is available, it is a much better risk adjusted choice. If we small investors had 100 stocks in our portfolio, it wouldn't matter. If we have only a dozen or so stocks, we really have to beat the market significantly and consistently to beat the market on a risk adjusted basis. A 10% return on an S&P500 return is a better risk-adjusted return than 14% on a ten stock portfolio IMHO. I have a list of gold funds, healthcare funds, REIT funds, natural resource funds and WEBS in hot standby for when their sectors turn up into a column of X's. Haven't found any semi funds yet. BTW, you can buy closed end funds real time like a stock. How do you buy an index like SOX? Regards, duke60