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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (5263)	5/20/1999 11:47:00 PM
From: Lars	Respond to of 15132

* Millionaire Next Door * Self-employed people make up less than 20% of the workers in America but account for two-thirds of the millionaires.

To: Wally Mastroly who wrote (5263)	5/20/1999 11:48:00 PM
From: Lars	Read Replies (1) \| Respond to of 15132

* Millionaire Next Door * How does one millionaire discourage telephone solicitations from cold-calling investment advisors? He asks them to send him a certified transcript from the colleges they attended.

To: Wally Mastroly who wrote (5263)	5/21/1999 6:09:00 AM
From: Justa Werkenstiff	Read Replies (2) \| Respond to of 15132

Wally and all: I think we have to face some facts here with respect to the small caps. We are in a small cap rally the past few weeks where the Russell 2000 has outperformed the S & P 500. Now some may argue that the Russell 2000 will underperform when the lead nut get taken out at the end of June. This thinking is, of course, based on the assumption that the nuts going forward will be a good thing to have in a portfolio and this is not a sure bet. And there is nothing to say that the old Russell nuts won't be replaced by new Russell nuts. And I think the whole argument falls on its face because the S & P 600 index of small caps has mirrored the performance of the Russell 2000 without the Russell nuts. So we should all get a grip and face the reality that we are in a small cap rally. I said months ago, that either the small caps would rally in a broadening market or we would have a correction. Market history suggested that a correction would be needed before the small caps would rally. But typical of this bull run, the market ignored its own history. Brinker has said that the catalyst for this small cap rally has been that the companies were so cheap either the management or others were buying them out. I have had two such instances in my portfolio this year and so I think Brinker has a point. And in a strange way, this whole small cap rally has made me more bullish long term in light of the churning of some of the parabolic stocks that were of great concern to me earlier in the year.