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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Hawkmoon who wrote (3014)2/16/2001 9:17:22 AM
From: Zeev Hed  Read Replies (2) of 3536
 
I think this proposal is is fiscally irresponsible. Some people will chose rightly, and always increase stock (S&P, for instance) allocation at bottoms, others will at tops, guess who will allocate larger proportions at the top? Those people that finally at the end of bull moves get persuaded by wall street to take their (WS) inventory off their hand. Wall Street is simply trying another way to fleece those potential investors it has not yet fleeced with a temptation song "stock in the long run....", but they forget to tell you what are these long runs. For instance between 1966 to 1982, if you invested in the Dow Jones, you would have lost over those 16 years, 50% of your money, since you would have been seduced in at the 1966 top above 1000 and finally thrown in the towel at the August bottom of 1982.

There many other reasons why that is a very stupid proposition, invest excess SS in government backed issue (and that is one reason we should not "pay off" all the debt).

Zeev
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