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Technology Stocks : Apple Computer (AAPL): Analysis and Forecasting
AAPL 271.01-0.3%Jan 2 9:30 AM EST

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To: Marc Newman who wrote (369)8/3/1998 8:39:00 PM
From: Andrew Danielson  Read Replies (1) of 692
 
<<Well Dennis, good luck to you. That's what makes a market, I guess. I feel you've gone from a high risk strategy to the complete opposite.>>

I respect Dennis' decision to go all cash for fear of a major market correction or crash, but let us not refer to transferring one's entire portfolio to cash as something that is the opposite of high risk, i.e., extremely safe. People often fail to take into account opportunity costs in assessing risk.

In other words, Dennis risks being left behind should the market go significantly up with his assets completely in cash. His assessment is that this risk is lower than the risk of downside in stocks, hence his decision. However, his decision still involves taking a risk and is therefore not totally "safe."

Andrew
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