Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (90241)	3/13/2001 10:16:08 AM
From: Tommaso	Read Replies (1) \| Respond to of 132070

I am sure you already read this in the WSJ this morning. Funny how the truth keeps seeping out eventually: public.wsj.com

To: Knighty Tin who wrote (90241)	3/13/2001 10:46:42 AM
From: Thomas M.	Respond to of 132070

Subject 50956

To: Knighty Tin who wrote (90241)	3/13/2001 11:18:36 AM
From: accountclosed	Read Replies (5) \| Respond to of 132070

The other side of a market mania is a painful process that can threaten one's emotional and financial well being. That's why it's so important to stick to a plan and execute it with as little passion as possible. It also serves as a reminder that most individuals are ill equipped to handle the rigors of prudent speculation. There's no free lunch, especially in the shark-infested waters of the capital markets. Yet the damage inflicted by greedy firms is perhaps much greater than just a massive erasure of "wealth." Wealth is a misunderstood concept, as is the difference between investing and saving. The trillions of dollars in market capitalization that have evaporated over the course of this grizzly market are nothing more than an illusion. It wasn't wealth or money in the first place; it was only paper. There was simply no way to monetize all that paper, although at the margin, many sharp folks did turn that paper into real wealth. Valuations were such that in many cases, decades of strong earnings had already been discounted and many of those companies were destined never to earn a dime. A huge amount of money was transferred from investors to entrepreneurs, corporate management and, of course, the investment firms that were paid well to bring companies public. Still, most of the "wealth" created during the final stages of the mania was about as tangible as that on the ledgers of "investors" in Ponzi's infamous scheme ... Certainly, prices have become more attractive in some cases, but it's time for most investors to begin anew. Prudence and diversification should be the cornerstones of one's financial plans, and those who came to view the market as sport should give their hard-earned money to an experienced and reputable pro. (There are many of them, but you have to look at more than just bull market performance.) Take in a ballgame or start a new hobby. Spend more time with your family and less with your PC and CNBC. Or just have a spot of tea. Just don't look for sympathy. It's not forthcoming, it's unproductive and it's not what made America great. This, too, shall pass. from today's meehan's notes