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

To: chartseer who wrote (5909)	8/15/1998 3:48:00 PM
From: Mr. BSL	Read Replies (2) \| Respond to of 34824

Hi chartseer. A good chartist should always be able to run circles around the best mutual fund managers. . You are of course correct. However, with a small portfolio (~20 stocks), the individual investor is taking tremendous single stock risk. The question becomes, how much return over the market averages is sufficient compensation for this risk? In a Bull confirmed market, I like my chances with mostly sector mutual funds and a few stocks. When the market is in transition - say reversals in the HILO & 10WEEK with the 30WEEK and OPTI still negative, I find that chasing individual stocks up (with close stops) is fun and profitable. However, IMHO in a bull confirmed market we need to milk out all the profit the market will give us without getting CA'd! Looking forward to the day I can take off my mutual fund training wheels. Take care and have a great weekend. duke60

To: chartseer who wrote (5909)	8/15/1998 4:05:00 PM
From: Al Serrao	Read Replies (2) \| Respond to of 34824

Good question chartseer, but all I can do is ask another question. Why would DWA go to all that trouble to provide P&F on mutual funds? Because there is money to be made. Another answer, remember all those stocks a fund manger buys ( that's most top fund managers) go through their own screening process. And if you know the fund manager well enough you can mix and match styles. And you can always juice it up with sector funds. And if you really want move and groove you can always buy on margin. Remember if 80-90% of the risk in any position is the market and or the sector, why do you need an additional 10-20% more risk by buying the stock when a perfectly good sector fund is available? My preference is to use a combination of stocks, options,and funds. Different strokes for different folks. Hope this makes sense. I didn't mean to take up everyone's time on mutual funds when many may not be interested.

To: chartseer who wrote (5909)	8/18/1998 8:01:00 AM
From: chartseer	Read Replies (1) \| Respond to of 34824

Year2000 sector looking pretty good here. Especially CBR CPWR EDS IMRS KEA MERQ PLAT and SSW. Of course this is just my opinion. And I could be wrong. Chartseer

To: chartseer who wrote (5909)	9/27/1998 5:29:00 AM
From: Bwe	Read Replies (3) \| Respond to of 34824

>>A good chartist doesn't need mutual funds.<< Chartseer, So interesting going through some of your past posts and catching up with you over here on SI. As you are well aware, sector analysis is an important component in overall p&f analysis. Chartcraft uses mutual funds to take advantage of sector rotation within the industry groups and uses Fidelity sector funds to take advantage of Bullish % action. I believe their mutual fund picks have done better than their long term or low priced portfolios in the Hulbert rankings. duke60, by the way, mentioned to me the other week that the AMEX is creating sector SPDrs and that would interest me greatly. Any news on that, duke60? Take care, Bruce

To: chartseer who wrote (5909)	9/27/1998 10:35:00 AM
From: Al Serrao	Read Replies (2) \| Respond to of 34824

chartseer, you're right a good chartist should be able to run circles around most mutual fund managers. But once I read Tom's book, I realized factually what I already knew. Since about 80% of the risk in the market is market and sector risk; then why do do you need an additional 20% risk when you buy an individual stock when a good sector fund is available? If you ask yourself this question on every stock purchase, you will begin to limit your purchases to only those exceptional companies you want to own. In other words there has to be some over riding and compelling reason to take on an additional 20% risk. Over time this method will leave you holding those exceptional stocks that will make up your core portifilo. After all these are businesses we want to own. In the meantime, mutual funds limit your risk, give you immediate diversification, improve your timing, and provide the kinds of screens only a seasoned money manager can bring.