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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (4195)	10/3/1998 3:04:00 AM
From: Berney	Read Replies (3) \| Respond to of 11051

Gersh, Excellent, Excellent Points!!! The basic issue relates to asset allocation in an investment portfolio. In considering this allocation, the investor must consider the risks and rewards of fixed income and equity investments, as compared to the individual investor's future needs, perceived inflation rate, and personal income tax bracket. I urge all to look at the charts of equity investments since 1994. If they have not gone parabolic compared to the past, I think we need to redefine parabolic. I believe in a concept that I call The Peter Principle -- no, not the Peter you are thinking about, but Peter Minuit. Peter is the one that we all read about in the history books. History tells us that he bought Manhattan Island from the "owners" for some $24 worth of "beads and trinkets". If the Indians had taken the "value" of that "money" down to CMB, at current interest rates, today it would be worth far more than the all the "money" in circulation today. The point being that all financial excesses will take care of themselves. Einstein called the compound interest formulae the greatest mathematically equation ever created. It only has three variables; principle, time and rate of return. Unfortunately, most of us push the edges as our initial principle is limited and we delayed the investment role until much later than we should have. However, in the final analysis we need to remember, ashes to ashes and dust to dust! Now, back to equity investments. I'm convinced that if one acquires an equity near the lower levels of the monthly trends, the investor will be rewarded. I urge all to look at the monthly trend levels over the last 10 years. Long-winded, but I wanted to comment on your excellent post! Berney