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

To: Boca_PETE who wrote (7087)	8/23/1998 1:15:00 PM
From: Kirk ©	Read Replies (2) \| 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. Maybe not a trader, but how about a Marketimer? BB got out of Asian Tigers for believing the sector would underperform (direct hit) BB says stay with Large Caps or at least VTSMX until we see money flowing into the small caps then we can chase the higher returns. (direct hit so far) BB says invest 10% in Europe. (direct hit) BB still has 15% remaining in general international. The funds are good compared to others, I've owned th eVanguard one almost for the whole decade, but it is still underperforming the US market. (a miss for a market timer) You make a good point re currency gains if Fed lowers which I think they will have to eventually. In one sense, one could argue that our high interest rates are almost an act of economic war against the struggling countries. Not a complaint, just it just struck me as odd to say "stay out of small cap until they start performing" and then have such a high percentage overseas underperforming (15% considering Europe is a direct hit). Obviously, at only 12% invested directly in international funds, I am marching to my own drummer but with similar performance so I am not saying my way is better, just interested in the logic. BTW, I just looked and MNEMX is now down an additional 15% (roughly) since his switch and the fund he went to is only down 5.5% so another good call (though cash would have been better!) regards Kirk out