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Technology Stocks : All About Sun Microsystems

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To: JavaGuy who wrote (27153)2/3/2000 2:16:00 PM
From: Alok Sinha  Read Replies (2) of 64865
 
You seem to have the relationship between margin debt, equity gains and spending well thought out , and I would consider you an educated investor who is aware of the risks and reward of leverage. I don't think most retail investors (and day traders) have thought this through. Given the volatility in the markets (I can't remember a day when the swing in NASD was less than 1%) margin debt can exaggerate any movement to the downside if there is a prollonged pullback. I use margin debt all the time to leverage my positions when I think that the risks of leverage far outweigh the rewards.

Also I disagree that the long bond is going below 6%. My guess is it will stabilize between 6.3 - 6.5% when the short term supply demand imbalances work out. The big decline in 30 year yields is bizarre and perplexing to say the least (the inflation argument just does not jell).

Regards

Alok
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