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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.59+0.4%3:59 PM EST

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To: Elroy who wrote (74556)11/11/2007 10:37:27 AM
From: Dinesh  Read Replies (1) of 77400
 
Thanks a lot.

>Downside risk with CSCO is not close to nil; rather, its about the same as it is with any large cap tech stock

Yes. And, it would sound so much more in tune if you qualify it further as large cap tech *leaders*.

Switching back to indexes for a moment, returns sampled over a long period, and with the investment time horizon set to long term, the downside risk for S&P500 is - close to nil! I can recall some study that purported to show that S&P has not fallen over any rolling 10 year period, or something similar. Of course that dot-com bubble will not permit NAZ/etc to make similar claims :(

IMO this also illustrates the value of being a little more precise when saying something like "downside risk in...". Unqualified, it's possible to read it any ways.

Regards
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