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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (26719)	11/26/1998 12:28:00 AM
From: Jerome	Read Replies (1) \| Respond to of 70976

Justa, Another way to minimize risk and still get the benefit of an improving Soxx index would be to buy $1000.00 of each of the sixteen companies that comprise this index. Although AMAT and NVLS have been two of the star performers of the index many of the stocks in this index have a long way to go relative to their previous peaks.(ADI, LRCX and VLSI are a few examples). I suspect that by buying equal dollar amounts of each of the l6 stocks a portfolio would have some protection against one particular stock falling out of favor. I believe its possible that AMAT might return to the mid 30's while the index would keep moving ahead. If your trading costs are fifteen dollars a trade then the cost of initiating such a portfolio would be $240.00. It would also save time each day because a quick check of the SOX index each day would tell you if draft beer or scotch would be the appropriate refreshment for the afternoon. Just some idle thoughts prior to pass along. I do not know of an index fund that invests only in the sox index. Regards,.... Jerome