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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (4418)	7/13/1998 3:16:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78746

James: Appreciate the clarification. Makes more sense to me now. David Dreman reported that he invests heavily in low p/bk stocks of large caps esp. after they drop in price and he/his team have assured themselves that the reasons for the drop are understood and short term (I'm not sure what he means by short term.). The interesting thing for me was that in a recent interview (I think it was with Morningstar, not sure though) he said, if he can't find stocks that meet his criteria, and while waiting for such stocks to show up, he keeps his money in an index fund. (And the author of the article says Dreman has beat the S&P for the past few years.) So this might be one possible way to invest for individual investors. I know for myself, I'm mostly in a combination of stocks I've picked and cash. I will now go back and consider whether I too should put that cash into an index fund and draw from that fund when I see individual stocks to buy or put stock sales proceeds directly into the fund. Paul Senior