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To: Bonnie Bear who wrote (22346)2/28/1999 3:01:00 PM
From: Peter Singleton  Respond to of 86076
 
Bonnie,

You sure have done your homework! You ought to start a thread on defensive investing ... there's a fair number of folks who are talking about how to invest aggressively to capitalize on a market decline, but most of us would do well to try to figure out how to preserve capital and generate some income if we have to endure a multi-year, grinding bear market.

The only caution flag I have on what I've heard you say so far is my concern that the small caps selling at or below book value may still get slammed in a market decline / crash. However, those businesses that remain solid, going concerns as the market (and economy) bottom, should offer exceptional income and capital gains for a multi-year period, for folks who have capital to invest at the bottom.

I like talking about puts, and short funds, etc., but I think the two most important issues for folks like myself is how to get through this in one piece (e.g., the stuff you're talking about), and, also, some worst case planning if things really break bad.

Peter