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Technology Stocks : Cayenne Software (CAYN) -- Ignore unavailable to you. Want to Upgrade?


To: May Lee who wrote (1064)8/21/1998 5:43:00 PM
From: jach  Read Replies (1) | Respond to of 1096
 
<I feel much better thinking at least maybe this company will not disappear completely.>

although cayn will likely survive, it's not a guarantee and as always one should maintain their investment goals; and rule-of-thumb investment said no one individual stock should be more than 3% of one's own portfolio; in this way when things get real bad such as CIEN and Peerless (dropping more than 50%) one can still pretty much sleep without worrying too much.
In today's mkt of instant ups and downs, it's getting harder and very time consuming to focus on individual stocks that will standout; one alternatibe to this is to at least stay abreast with the mkt by using index funds or the DIA (diamond) or SPY (SPDRs). The SPDR is attractive as it is pretty much the mkt (S&P 500) and therefore, evene if it goes down it will come back up some day, as opposed to individual stocks that may never get back up again.
When the mkt seems or tends to be in a downward mood, hedging the SPY or DIA with the DJX and SPX can reduce the downside risk and at the same time comfortably maintaining the mkt appreciation up to about 8-10% per qtr.