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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (1016)	11/22/1998 6:36:00 PM
From: Berney	Read Replies (1) \| Respond to of 1722

Wayne, I have looked at the issue many times over the last four years. Because of the modern marvel of Index investing, the method employed is equally important to the stocks selected. Simply because of the nature of the system, Big stocks have provided greater performance potential. Hopefully, this will change one day, but I don't see it anytime soon. In a "normal" time period, I would expect 1/3 of the stocks to return less than a CD, 1/3 to return between a CD and the Index, and 1/3 to return more than the Index. The combination of returns consistently outperforms the Index. To have 8 of the stocks be negative, including 3 of the 5 Dow stocks, is highly unusual. If you remember, at one point, I believe 11 of the stocks were outperforming the Index. The last three months have been brutal and many of these stocks have yet to participate in this recovery. However, if this is not a bear market rally, they will participate. Berney