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Strategies & Market Trends : The New Economy and its Winners

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To: Bill Harmond who wrote (474)5/22/2000 5:13:00 PM
From: Robert Rose  Read Replies (1) of 57684
 
<Just stay with whatever strategy you have unless something fundamental changes.>

We can look at "fundamental" in two ways.

1) the unfolding developments of the New Economy. Nothing's changed there. We certainly can both agree on that, let's hope.

2) What's changed fundamentally is this investment environment, for now. That is the real issue here. And I certainly don't have the final answer to that. And in your darkest moments, you might even admit to not having it yourself. And that is why the issue of asset allocation is so important. It's all about managing risk, preserving wealth, and certainly, maximizing wealth given current market conditions.

I'm sure we all must agree that flexibility is the key to successful investing. It's a new world, WH. I believe it!

< If you can stand the upside volatility, but not the downside, then lower your portfolio's beta or trade more.>

Lowering the beta. That's what I've been talking about. Amen.
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