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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (3552)	3/23/2001 4:40:44 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 33421

I wonder how many times that story has been multiplied over... Absolutely appalling. But John, it really amazes me that a couple with so much self determination (as it takes to begin and successfully run a business) would hand their result of their life work to the opinion of a securities "analyst". The article doesn't really specify whether this couple was relying on their stockbroker or their investments were "self-directed" and simply following the herd. Each investor is asked to supply their analysis as to their "risk tolerance". Did these people ever ask themselves what their reaction would be if they (gasp) lost money? It is simple, common sense to me, but it continues to amaze that people are willing to concentrate their life savings into what they have to realize are speculative investments. Everyone should have a diversified portfolio, any by that I mean cash, equities, fixed instruments, and maybe some real estate. Nobody goes into an investment looking to lose money, but they damn well better recognize the potential is there and take precautionary measures to preserve capital should they be wrong. I have heard personally about similar situations, defies logic, but then again, greed and fear usually do.

To: John Pitera who wrote (3552)	3/23/2001 4:45:09 PM
From: Challo Jeregy	Read Replies (1) \| Respond to of 33421

that is very sad. I wish someone had the nerve to read this letter on cnbc.

To: John Pitera who wrote (3552)	3/24/2001 1:25:05 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 33421

A very eloquent and profoundly sad tale, John. If only these folks had put 1/10 of the effort into their investments as they had their business, the results might have been different. Her anger at the brokerages and the Bubble Media machine is quite understandable and justified, IMO. Market risks are ALWAYS downplayed by brokerages, consigned to the smallest possible print at the bottom of the page, and it's always worse during a mania. I agree that it's a classic example of a mismatch between investment risks assumed and the risk profile of the investor. This story should be required reading for anyone opening a new brokerage accout. Regards Patron