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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Gordon Quickstad who wrote (9980)3/28/1999 6:47:00 PM
From: gvander   of 27311
 
To sum up--Prices can fall without a suitable place for dollar proceeds to go.

There are periods in the U.S. and elsewhere where it appeared there was nowhere for the proceeds to go and thus prices should stay high. This proved to be disastrous logic. In fact, that is the very period one should be seeking to scale back. When the alternatives are obvious, competing investments (in this case stocks) will already have adjusted (downward). One has to adjust one's portfolio before alternatives become available. Once the altnernatives become avaialbe it is too late -- the competing investment (stock prices) will have already dropped contemporaneously (sometimes in advance given the stock market is fowarding looking). There are periods where rates were so low that most considered leaving the stock market foolhardy, in fact, it is when it looks foolhardy that it is most wise.

I appologize in advance for going "off-topic." Hope you find this useful.
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