We call it the zigzag theory. You want to find something that zigs and something that zags and blend them together to get a better combined performance.
Now quantitatively we rank things on something called alpha over standard deviation, which is the return independent of the market divided by volatility. Usually, to get a high ranking, you need some buying pressure.
I've been investing in the stock market for 27 years and, within that time, have helped investors beat the market nearly four to one.
All I'm trying to do is manage money and take care of my shareholders.
I still love the semiconductor industry.
Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks.
I almost always recommend investors get fully invested, since it's better to put your money to work than to let it simply track the rate of inflation.
I expect my return to be 18 to 25 percent in 1988, while the Standard & Poor's 500 should rise 8 to 12 percent and OTC stocks gain 15 percent as liquidity emerges.
One of the things that launched the strength in biotech is when the pharmaceutical industry itself got a little slow.
I had Dell for four and a half years, and its sales are still phenomenal, but their operating margins started to contract, so I sold it in early 1999. There's nothing wrong with Dell! It's a fine company. It's just the business risk they took.
If you go back to 2001, the market had two violent short covering rallies then, although I know the market didn't officially get going until March 2003.
I sell these intermediate bond portfolios for people that can't go to stocks.
I simply can't buy as much of some stocks such as Detection Systems or United Education & Software as I'd like because there just aren't all that many shares available.
My advice to the average investor in 1988 is to be patient and think long-term. It will take 18 months for confidence to get better and, in the meantime, this is absolutely no place for short-term money.
There's a lot of companies that profit from a weak dollar.
If you are a short-term trader, you have the right to come and go from our funds.
When volume drops off, prices settle down. Volume is the force that turns stocks higher.
I grade my stocks. I'm what they call a quant, one of the geeks of the stock market.
I want attractive stocks that will benefit from persistent institutional buying pressure.
In college, I was told the market can't be beat.
