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To: Frodo Baxter who wrote (11700)	4/2/1998 9:59:00 PM
From: Spots	Read Replies (1) \| Respond to of 12298

>>Why cash and not bonds? First, by cash I mean a combination of money market, ST, and IT bonds, all of which make up part of my "cash." I was oversimplifying the message a bit. These are near enough to cash for my purposes. Also I do have a few LTs in the mix because these are all funds in 401ks, etc, with limited choices, and I couldn't avoid them. But mainly, in regard to LTs (Target 2025 and the like), I don't need to trade a devil I know at least somewhat (stocks) for a devil I don't (LT bonds), which CAN hand you major losses. Maybe you know they won't lose in a crash, but I don't. If LTs go contrary to the market, what good does it do me to take profits for market timing purposes (as opposed to portfolio rebalancing, which I am NOT doing here) just to put them into something that loses if I'm wrong and the market has a major rally? The point of cash and equivalents in my move was to take a profit regardless of what happens, not to trade fairly large risk for another admittedly probably smaller but much less familiar (to me). I guess the short answer is, partly I was lying for simplicty, partly because it doesn't fit what I'm after, and partly because if you think I'm ignorant in stocks, you should see my mental wasteland in bonds!