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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: advocatedevil who wrote (55765)	11/16/2001 7:45:44 PM
From: Jacob Snyder	Respond to of 70976

re: if you could remove the war news variable for the next few weeks If you could magically remove the risk of future adverse political/military events, that would remove a lot of the risk premium from assets of all kinds, and all stocks would be worth more, because the future earnings stream would be more predictable. Sadly, that hasn't happened anytime in the century just ended, and I expect the same for the next century. In the 20th Century, over 100 million people were killed in wars, which is a record by a wide margin (are we civilized yet?). One can hope that record isn't taken out in the 21st Century. About the best that can be done, to decrease that risk in financial assets, is to hedge, and diversify into assets such as WPI. WPI is a small-cap generic drug company, which I just bought, after it missed and warned and the stock dropped 40%, to a PE (using new and much lower forward EPS estimates) near the low end of the 5-year range. If I add any new long positions, it'll be stocks like WPI.