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To: Cosmo Daisey who wrote (3759)2/27/2000 7:10:00 PM
From: DOUG H  Respond to of 8096
 
Protection may mean moving a big chunk of assets into CD's (now @ 6.76%) Pretty boring when you think about it but when you think about the market risk and volatility and the prospects of maybe going back to a day job it feels pretty good.

Cosmo, thanks for saying this because it demonstrates why interest rates are important. So often we hear, "Who gives a crap about the 30 yr. bond?" 6% vs. 300% is a no-brainer!
I guess the point is that after several years of 300% one's thoughts turn to "how do I keep it"? There does come a time in which someone in stocks says 6% sounds pretty good vs. -25% on a million bucks.

Just ramblin' when I oughta be workin'

D.H.



To: Cosmo Daisey who wrote (3759)2/28/2000 9:16:00 AM
From: edamo  Read Replies (2) | Respond to of 8096
 
cosmo... "conservative investments"

ginnie maes....boring but rates are better then treasuries...down side hefty prem return on refi's when interest rates drop, but only if you are looking to reinvest in fixed incomes....actually beneficial if you want to return to equities...

personally the fed is the only problem that the market has....