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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (40061)	12/19/1998 10:50:00 AM
From: accountclosed	Respond to of 132070

Isn't that type thinking on the part of TA's scary? I think I'll run out to the store and buy stuff when prices go up. <g> I want the reward without the risk. Don't we all! <ng> But, don't think it works that way. As far as being long anything in a bubble, in isolation, it is scary. But if the longs are undervalued situations that you can have patience with and hold forever, the downside risk is lessened if you also have some exposure to shorts or puts on stocks that are way overvalued. In the net, the total portfolio, with diversification both among issues, longs and shorts, and types of securities can provide some of the protection. Even if your longs go down somewhat in a bk, the puts can tend to bail you out. Then you, secure in your own model of valuation can hold dbrsy, impay, ewj until those issues come back into fashion.

To: Ilaine who wrote (40061)	12/19/1998 3:09:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Coby, 10% of my total portfolio is in the capital appreciation portfolio, so that tells you how I feel about the danger of being long any stocks. But, IMHO, it is better to be long what is crawling along the bottom than what is zooming through the roof, in any market environment and assuming the cos. are survivors. Using the 3 stocks you mentioned, I think the monopoly player in diamonds, the dominant player in platinum and palladium and the world's second largest economy are pretty much in the game for the duration. MB