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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: marc ultra who wrote (1113)	9/19/1998 9:41:00 PM
From: Investor2	Read Replies (2) \| Respond to of 15132

That's an interesting point. It reminds me of a question that has been in the back of my mind for some time: Has the huge multi-year bull run that we've had during the 1990's invalidated the use of the beta coefficient? Let me rephrase that a little. During a period in which the market is always going up, is a beta less than 1.0 simply a sign of underperformance, rather than a sign of less risk? The fund that you mention has underperformed the market, but it has a low beta. Maybe the low beta was not a sign that the fund is less volatile (i.e., rises and drops less) than the market. Maybe the fund rises less than the market in bull runs and falls more than the market in corrections. Any thoughts? Best wishes, I2

To: marc ultra who wrote (1113)	9/21/1998 8:56:00 AM
From: Wally Mastroly	Respond to of 15132

Abby + Speaking of funds that held up well in the recent downturn, checkout SmartMoney (Oct '98 issue)- or smartmoney.com. Some excerpts: In the 5-week period from 17 July to 21 August, the American Century Equity Income Fund (TWEIX) dipped only 3.91 %(1 Yr. return of +18.3%). The manager (Phil Davidson) is value oriented & focuses on bargain stocks that maw be takeover candidates. He has been defensive, however, with over 20% of the fund in convertible bonds. The other 2 fund mentioned were (correspondinding dips/1 yr.Return.): (PRWCX)-T. Rowe Price Capital Appreciation (-3.52 %/ +7.73%). Mixture of equities, bonds, convertible bonds, preferred stocks & cash. (SYMBOL ?)(Monitor Income-Equity (-6.92 %/ +14.14%). Manager Jim Buskirk likes dividends in this market. 35 of funds 38 stocks expected to raise their dividends this year. Fund includes 15% in corporate bonds. smartmoney.com See Three Fund for Hard Times P.S. - Bonus: See Abby Cohen's stock picks also. >The Queen of the Bulls is no less bullish -- though she does admit to underestimating the market's volatility. Here are the companies she likes right now.<