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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: shamsaee who wrote (25860)	6/5/2000 4:54:00 AM
From: Seeker of Truth	Respond to of 54805

There's a real problem as to where to put the part of the portfolio not in Gorilla/Kings. At the moment cash looks ok particularly if you are not taxed. But long term this has not been the case. Inflation has proven faster than interest rates. In the last decade or so,oil prices have been falling. This calmed inflation. Recently as you certainly know the trend sharply reversed. Beginning about 2005-2010 in industrialized countries the ratio of retired people to the rest will greatly increase. This creates a demand for government spending. The very long term future for cash isn't good, IMHO. As for real estate I remember well the grown ups talking about the "crash" when I was a little boy. It seems that real estate went down as severely as stocks. In those few years, only cash was king. It seems that we can't count on one thing, but have to jump nimbly. Inflation indexed bonds sound great, you could consider them. But please remember that we have been hearing about the coming prolonged bear market ever since the end of World War II. There has not been one for tech stocks. We did have severe short term plunges. Mike Buckley's point, how can we assemble a huge cash reserve without investing in gorillas first, looks like the most cogent idea.