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


To: Investor2 who wrote (2131)11/15/1998 7:26:00 PM
From: marc ultra  Respond to of 15132
 
I2, I guess the issue would be how did the index do against let's say Magellan etc. over the 16 year flat period from ? 1966-1982. I think if Bob was just a blind indexer he may have never bothered with model portfolios other than passive/active. It's in the last several years the underperformance of the managed funds has become so pronounced. Peter Lynch didn't get his reputation by running an index fund. Perhaps more important is that load funds will be sold on such a ludicrous idea of pulling out some rare anomaly of market history to discourage people from indexing.

Marc



To: Investor2 who wrote (2131)11/15/1998 8:06:00 PM
From: mister topes  Read Replies (3) | Respond to of 15132
 
Get a grip. Brinker never said 1973-74 was a period of flat
market performance. He said the 16 year period of 1966-1982
the Dow ranged 250 points plus or minus around Dow 800
just about anytime you checked it over the 16 year period.

He has often talked of the greatest recent bear market
of 1973-74 which saw the Dow tank 45% and S & P tank 41%
over the 24 month period. He has always told investors
to be risk averse whenever possible in such a bear market
environment. Many managed funds did better than the market
during 1966-82 if they had great stock pickers. During the
1973-74 bloodbath the only thing that worked well was cash & shorts.



To: Investor2 who wrote (2131)11/16/1998 5:01:00 PM
From: Trebor  Read Replies (1) | Respond to of 15132
 
> Did you really say that managed funds may be better than index funds during an extended period of flat market performance?<

You bet he said it and I respect him for doing so because: A. it's true; and B. it shows he's not just a blind devotee to index funds. The only reason I hang on to a few managed funds is because they beat the pants off my index funds in 1994. They also fared better in this recent correction.