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Technology Stocks : JDS Uniphase (JDSU)

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To: Master (Hijacked) who wrote (6544)2/21/2000 12:33:00 PM
From: Smacs  Read Replies (3) of 24042
 
Suppose Nasdaq stocks increase by 1/10th (one tenth) of last year's pace. That means growth of 8.5%. Take away taxes and you are still left with 4.25% return. It is still better than your bonds.

The problem with ALL the arguments thus far is that they depend on market timing. David's going to miss out on a whole lot of gains because he's pulled out of the market too early. You're going to get nailed when the market tumbles because you've got all your money in equities (gross generalizations, I know. I have no idea what either of your portfolios actually look like).

Point is, it's prudent to take the middle road (particularly if you're nearing retirement in the next 10-15 years). Keeping a portion of your money in bonds or money markets IS a great idea, but pulling out of the markets completely is foolish.

Even an aggressive investor should try to keep 10-15% of his/her investments in liquid assets in case there IS a steep market dip. I want to be able to cash in on a big market drop and snap up the cheap shares to offset any losses that I may have incurred in my equities. Bonds, MM are easy to get out of but still accumulate interest while they're sitting there.

Market timing is dumb (IMHO;)

-sm-
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