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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: George Coyne who wrote (670106)1/28/2005 3:37:36 PM
From: DuckTapeSunroof  Read Replies (2) | Respond to of 769670
 
"limited options will limit the POTENTIAL large gains, but more importantly, they will substantially reduce the long term downside risk!"

No, limited options DON'T 'reduce risk', they INCREASE risk.

That is the very basis for Modern Portfolio Theory (otherwise known as 'don't have all your eggs in one, or just a few, baskets'), for which the Nobel Prize in Economics was granted.



To: George Coyne who wrote (670106)1/28/2005 3:54:23 PM
From: Sedohr Nod  Read Replies (1) | Respond to of 769670
 
Anyone with the slightest bit of financial knowledge understands that impressive amounts of money can be accumulated over 40-45 years even with modest returns....the preference for money to go into a wasteful governmental void instead of directly building wealth for the individual is clearly faulty.

The sooner the better.