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

To: BGR who wrote (55289)	4/8/1999 9:15:00 PM
From: Alias Shrugged	Respond to of 132070

BGR "Over-owning"=over-weighted: if "market" is defined as SPX, of which 2% is gold stocks (made up number), and I own 5% gold stocks. I suspect Mike Burke violently rejects the notion of defining risks in relative terms, and uses a definition of risk rooted in his model of how the real world and the financial world correlate. If he sees that relationship seriously out of whack (as in today's US equity market), he chooses not to be naked long the market as he perceives the risks as too high, even though MPT would see such a position as entailing a "normal" amount of risk. Seems to me that MPT offers a method of investing in a market ONCE you have decided to be in that market. But, the critical decision is whether or not to be in that particular market. How do you decide how to allocate your investment dollars among (1) equities (US vs other markets; small versus large; value vs growth); (2) real estate; (3) fixed income; (4) commodities, etc. etc.? Mike