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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Bill Martin who wrote (5394)	7/12/1999 11:42:00 AM
From: David Harker	Respond to of 8218

>Re: Am up 27% on the year ... > >Given that the stock is up about 45%+ thus far this year, it >sounds to me like you ought to give up trying to trade it. Well, given my aggressive tech. investments outside my 401k, I tend to be conservative in my 401k, relatively speaking. So, I keep the money in short-term bonds when it is not in IBM stock for a trade - which helps when the market tanks - like it did last fall. If I get 27% a year with my current approach, I'll have an 8-figure 401k several years before my wife and I plan to retire. That calc doesn't include the 18% of my salary going into the 401k each year, 15% from me and 3% from IBM. IBM won't necessarily go up 45% every 6 months, and my approach makes money on little 10-15% price swings. My current-yr trades gave me 12%, then 13%, compounded that's 1.12 * 1.13 = a 26.56% gain. If the world freaks out about another currency crisis, or Y2K, I'll buy low in my 401k while I'm possibly sweating bullets w/ my after-tax investments - I like that balance. I have lots of exposure to IBM via my salary, I don't need my entire 401k in IBM stock.