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

To: Ms. X who wrote (4384)	7/3/1998 5:17:00 PM
From: james ball	Respond to of 34811

Jan, in response to your question on the SPDR. It is simply the S&P 500 divided by 10. It trades on the AMEX and has a cost structure to maintain the portfolio of 500 stocks slightly less than VAnguard S&P 500 fund. The main difference I feel is the control you have. You may short it or go long as you wish which is not possible with Vanguard. You can also sell it at anytime you wish. You can also use it as the underlying to sell calls against or buy puts agains. Since 80% of all money managers never outperform the S&P 500 it makes sense to make the SPDR's part of your portfolio. It also cuts down on transaction costs as it is a buy and hold proposition. A combination of dogs, or RS Dogs, SPDR's and sector rotation would be a very sensible way to go about portfolio management. Tom