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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (132528)	6/12/1999 9:09:00 PM
From: Meathead	Read Replies (2) \| Respond to of 176387

edamo, Re: , i aim for 12-15% I wish I could get that as a guaranteed return for the next 20 years. The only guarantee I have is the money I have in TBills at ~5%. The rest is in moderate risk stocks like Dell, Intel and then the all important real estate holdings. Maybe it will average out to 20% over the next 10 years<g>. Re: how do you think these "nouveau stock traders", would prosper in an 18% prime rate environment.. Just 18 years ago seems like yesterday! I see newbie traders strung out on margin getting killed because the Fed 'hints' at tightening. I can only imagine the carnage if the prime jumped to just 10%. Which reminds me, an old friend of mine bought AMZN at $180 back in April... 100k worth, 50k on margin. At the time he told me of his investment, the stock was down to $160. I asked him why he bought it, if he had done any research on the prospects for earnings growth and told him that I thought it was already at impossible valuations. His response was that he didn't need to waste time evaluating the company. "It's a hot internet stock and is just gonna split and keep going up." He also was not worried about the current dip and assured me it would quickly recover and that the dip was a good opportunity to load up on more. I asked him what made him so sure it would recover and continue upward. He laughed and called me naive saying "you haven't been paying attention to what's been going on in the market, have you!" Then I asked him if he knew what the Market Cap of AMZN currently was... he said, "Um... NO. What do you mean?". On top of that, he told me he was seriously considering quitting his $90k/year management position (Hi tech firm) TO BECOME A FULL TIME DAY TRADER. All I could say was "My advice to you is don't quit your day job". The thing that bothers me most is that this isn't an isolated case amongst all my friends and acquaintances. I know many others who have adopted the same cavalier attitude. This is why I'm worried. I believe that this mentality will eventually 'wreck the market'. I haven't spoken with my AMZN buddy since but I would assume he's gotten a margin call. MEATHEAD