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Technology Stocks : Intel Corporation (INTC)
INTC 41.41+2.2%Dec 5 9:30 AM EST

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To: Jim McMannis who wrote (173253)3/5/2003 10:51:28 AM
From: chomolungma  Read Replies (1) of 186894
 
Irrationalities like..."buy and hold" and watching 80% of your retirement evaporate?

You win the prize for most misleading statement.

Yes, if you bought a non-diversified portfolio of only Nasdaq stocks, EXACTLY at the top and sold them EXACTLY at the bottom, you would have a loss of about 78%. If you sunk all your money into Nasdaq stocks at the top, you were the proverbial sucker that is born every day.

If you bought a diversified portfolio of S & P companies, your loss would have been 50% during this period. If you had bought as far back as Jan, 1997, your compounded average return (ex dividends) would still be negative at -1.5%.

HOWEVER.... Compounded rates of return since end of:

1994: 6.7%

1990: 7.3%

1980: 8.1%

1970: 6.9%

1960: 6.3%

Tell me again, what's wrong with long-term investing?
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