Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (12314)	7/19/1998 9:58:00 PM
From: Robert Graham	Respond to of 42787

I have seen this with mutual funds that rode the 1987 correction down the crapper. Even last year, there were still funds that have not fully recovered their capital. I think this is probably due to a combination of exceedingly poor exit of the selloff, right at the bottom, and not understanding that the market had changed from that point in time. Some fund managers stayed out of the market expecting yet another major market correction due to an overvalued market. They did not get what they were looking for. The market kept going up and up. This hurt their performance further. However, even if a person was caught in the selloff and rode it down to the bottom, I think that if a person with a diversified portfolio stayed in instead of selling off right at the bottom, it would of been something like 3 years before breakeven. Someone please correct me on this! Of course I do not recommend anyone ride down the market on a major correction to sit with it for a few years with the expectation of breaking even a few years later. But I am commenting on the strength of the market since that correction in 1987. Compare the 3 years to breakeven from significant paper losses to the several year actual losses of funds that exited right at the bottom. Bob Graham