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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (22282)	7/25/1998 1:58:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Hi Bonnie; If you have time give me a list of the symbols, so I won't have to dig, and I'll put them in a paper portfolio and manipulate them some, as if I had been playing them like the dow dogs etc. and try to see how they move relative to one another. I'm a believer in water finds it's own level over time and like stocks in a sector move in sympathy with the others. Jim

To: Bonnie Bear who wrote (22282)	7/25/1998 12:55:00 PM
From: Berney	Read Replies (1) \| Respond to of 94695

Bonnie, Let's not forget the tax implications! Mutual funds obviously foster and encourage the Buy and Hold mentality. Most mutual funds are very tax inefficient, since the average domestic equity mutual fund has a turnover ratio of 88%. Additionally, the folks in mutual funds with a low turnover ratio will be in for a big surprise when the BK does arrive. As bond fund holders found out in '94, its not a lot of fun to see the NAV go down and big taxable dividend distributions at coming into the tax return. As I've said to you before, I agree with your concept. Forget the mutual funds, buy the stock of the publically traded ones. The same goes for SPY versus mutual funds in general. Much more tax efficient, lower expense ratio, and better performance than 90% of the funds. An exception exists for "specialty" funds where the manager's expertise and diversification is of importance. Berney