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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (6396)	1/6/1999 8:52:00 PM
From: SJS	Read Replies (1) \| Respond to of 14427

It goes something like this: People want "speculative" safety. That mean CSCO, MSFT, LU etc (large caps) at ANY valuation (even historically "unreasonable"). People do not want small caps because there is more risk in owning them IF they fail (perception is that probability is greater than 0 and less than "X" that your investment declines). CSCO is not going to fail (perception is that probability = 0). Therefore, while stratospherically valued, it's better to still own it. For all of 1998, Fidelity's Low-Priced Stock fund returned .5% For all of 1998, Fidelity's Mid-Cap Stock fund returned 15% For all of 1998, Fidelity's Large Cap Stock fun returned 36.3% That says it all to me.