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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (35191)	7/16/1999 12:09:00 AM
From: JohnG	Read Replies (1) \| Respond to of 152472

Jon--Tapping margin act is the HOT TICKET. Get a high growth portfolio, pay a little interest and borrow without increasing your % margin. Best of both worlds! JohnG

To: Jon Koplik who wrote (35191)	7/16/1999 12:18:00 AM
From: Maurice Winn	Respond to of 152472

Taking Profits <Re : Of course everybody's situation is different, and you have to take profits at some time or there is no point in investing in the first place. How about having a margin account and endlessly removing (ever-increasing) cash available, while having one's equity reduced by margin interest charges (those interest costs ideally growing more slowly than the value of the underlying stock).> Precisely! That is what any self-respecting wild and crazy guy would do. It works beautifully. But the margins must be kept VERY conservative for that to work in the long run. That is because once every generation there is a VERY big stock market downer and people on margin get sold out at the bottom by the security holders. Some of use came close to experiencing that last September when Zenit crashed, just when Long Term Capital Management had got themselves fully geared, including Globalstar stock, Korea had collapsed under speculative property investments gone sour and general speculative borrowings, the rest of the world had a suddenly disjointed financial system and liquidity was short. Qualcomm stock price fell in fear of Korean distress [which was never a real problem for cellphone sales but those pricing the Q! stock didn't understand that]. My bacon was saved by Alan Green$pan doing what I had bet that he would do when the panic inevitably arrived. He gave a very large liquidity injection to the world. The point is, even with very good new-paradigm investments, things can go synergistically wrong at just the wrong time. Conservative margins are needed to ride out those large, inevitable dislocations. The other point your comments make is that the question of what exactly is 'money' needs to be considered. The power to tax and the power to run a money system which the central banks enjoy doesn't mean their 'money' is any more real than the 'money' which is represented by share certificates. They are both just paper [or computer magnetic fields these days] and their value depends on continuing human good faith in the institutions supporting those 'monies'. Bet on Q! and EudoraCoin [TM] rather than Alan Green$pan's stuff. Mqurice