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To: GST who wrote (83050)11/3/1999 8:59:00 PM
From: Robert Rose  Read Replies (1) | Respond to of 164684
 
<In this stock market, there is no risk premium on stocks -- quite the contrary.>

What?!?

Which stock do you think is riskier to own: msft or aapl? And which has a p/e of 61, and which has a p/e of 22? You don't think relative risk is being priced into each stock??

<It won't matter what form it takes, any event that causes a sudden realization that there actually are risks will require repricing the market to reflect the risks that were there all along -- meaning Nas 2,000 is at least as likely as Nas 4,000. >

Huh? You think I'd invest in these stocks if I could expect a 2% return? Of course not. I'd park my $ in a savings account and save the headaches. It's all about risk vs. reward, You know that. Some of us are willing to accept the higher risks of these stocks because we desire the higher rewards. Those of us who are not willing to accept those higher risks choose investments with lower rewards. The market is always repricing competing investment vehicles and thereby readjusting their risk/reward ratios as economic developments unfold.

Long live our efficient markets. The system works!