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Any historians out there know if Standard & Poors has always droppped and
added companies to the S&P 500 as frequently as they do now? The frequent
readjustments may make indexing a more steady growth vehicle during
multi-year down/flat cycles. Comments?
Howard
>From: "Gary Fritz" <fritz@xxxxxxxx>
>Reply-To: fritz@xxxxxxxx
>To: <realtraders@xxxxxxxxxxxxxxx>
>Subject: [RT] Re: Top Five Admissions We'll Never Hear From Any Investment
>Guru on TV (MOTLEY FOOL)
>Date: Fri, 30 Jun 2000 09:29:09 -0600
>
> > "Of course indexing beats trying to time the market. But that
> > wouldn't make for a very good interview."
>
>Indexing (or buy & hold) beats the socks off timing -- in a raging
>bull market. Guess what? History shows that the market isn't
>*always* in a supercharged antigravity bull phase.
>
>Between Feb 1964 and July 1982, buy & hold would have gotten you
>ZERO. Timing was the ONLY way to make money for EIGHTEEN YEARS. By
>1982 "common wisdom" said that buy & hold didn't work, and timing was
>the only way to beat the market. Of course, by the time that became
>"common wisdom," the megabull started, and timing didn't work very
>well any more.
>
>Now buy & hold has reigned supreme for eighteen years, and it's
>"common wisdom" that only buy & hold works. Hmmm.
>
>
>
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