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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?


To: Bald Eagle who wrote (18113)2/25/1999 5:39:00 PM
From: Rich Investor  Read Replies (2) | Respond to of 44908
 
Bald Eagle,

I have heard of bear markets thank you very much. As for your question about a RRSP portfolio:

RRSP stands for Registered Retirement Savings Plan and is a tax-sheltered investment vehicle that allows investors to put away a fixed amount of money according to their annual income minus pension adjustments etc. into their choice of equities, fixed income and cash instruments. The beauty of it essentially is that you don't pay tax on your capital gains year after year until you cash out at age 65 or earlier if you choose and convert to a lifetime annuity or similar instrument. Without going into all the technicals behind RRSP's, the point I was trying to make was that many people are very cautious about the kinds of stocks and such they put into such a plan. Because it is their nest egg after retirement, the risk factor many are willing to assume is considerably less than would be the case in non-registered (where you have to pay taxes on gains each year) Blue chips are often a favorite of investors for RRSP's because they enjoy consistent gains of 10% or more in a good market over a period of several years.

Getting back to TSIG, my point was that investors for the most part MAY not be happy with the same pattern of growth on an OTCBB!! stock in a non-registered account. Just like your typical brokerage account to put another way. They are in these stocks to see above-average returns because it is play money to them. Not everyone in these situations is going to wait around for years on end if there are other stocks out there churning out higher returns in the same time period, even if they are based on hype and no substance.

This is just an alternate point of view, and I can understand that perhaps your approach to investing is different and you are willing to wait around indefinitely for a big gain. Just don't be surprised if others don't share your philosophy as is unfortunately the case with OTCBB's A harsh reality it is!

In the meantime, let's try and be friends and make some money together!