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 : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (7081)	8/23/1998 12:24:00 PM
From: Bill Shepherd	Respond to of 42834

Re: Just updating the accounts of some I help and noticed that one international fund that was bought to replace an emerging market fund is down over 8% since making the switch. Kirk, I too have wondered for some time about the performance of the emerging market funds. To recall it, that discussion has come up numerous times on various discussion groups, as well as the BB chat room. I removed my weighting in emerging markets a few days before BB called for switching those funds, mostly because I was thoroughly dissatisfied with their performance. Your comment that his alternative investment is down 8 percent is sad to hear...though perhaps the move will pay off in the future. Instead, I chose to place my meager (about 5 percent of portfolio) emerging market funds into tech-sector firms like KLAC, HWP, and UTEK. I realize this goes against the recommendation of BB, but I felt like taking a riskier approach...I believe that the payoff will be greater than the 8-10 percent predicted for the market as a whole. As to your direct question, I too wonder about the 25 percent overall weighting in foreign markets, what with overwhelming strength of this US market (recent correction notwithstanding). My current allocation is about 15 percent in international funds, with 5 percent in Europe and 10 percent in a general international fund. I currently see no reason to alter this mix. Finally, as to your comment that the sell off (in emerging markets, I presume) is due to sympathy to Russia and Japan. From what little I know, I think Japan's problems are big, and could have an impact on emerging markets (SE Asia in general) on the other hand, the Russian economy is relatively small right now, and thus, while capable of causing psychological harm, less likely to cause permanent harm. It was good to hear BB's voice this Saturday! Regards..Bill S

To: Kirk © who wrote (7081)	8/23/1998 12:42:00 PM
From: Boca_PETE	Read Replies (1) \| Respond to of 42834

Kirk: re: < best move would have been to cash then or sell all international funds > Maybe if you're a trader. But just watch those international funds take off when Greenspan lowers interest rates later this year as US growth slows. At that point, you'll not only have international stock market gains, but you'll be getting currency gains from a weakening dollar. A weakening dollar will also take pressure off the international markets. Then there are the efficiencies that will grow out of the European Union and single currency coming on from 1999-2001. It's not in anyone's interest to permit the trouble of Asia, Japan, Russia and China drag the rest of the world into a depression - except those book and newsletter publishers predicting the end of the world. Nobody WANTS TO be unemployed - we all have families, needs and wants to support. P