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To: Lucretius who wrote (25463)3/15/1999 4:52:00 PM
From: wlheatmoon  Read Replies (1) | Respond to of 86076
 
SCH--the innovator.

What a great idea......guaranteed principal and potential upside fixed with the S&P 500. No chance of a loss for the investor, but if the market tanks, I guess Schwab will have to dig into their own piggy banks to make up the difference. Then, again, in 5 years, S&P will be at 2500.

Where do I sign up?

-g-



To: Lucretius who wrote (25463)3/15/1999 4:54:00 PM
From: IceShark  Respond to of 86076
 
I don't get it. Your return is the same as the S&P or linked at some lower rate? And FDIC insured? I've seen everything now ... this quack sounds a lot like Ponzi's.



To: Lucretius who wrote (25463)3/15/1999 9:16:00 PM
From: John Pitera  Respond to of 86076
 
If you put 60% of the proceeds in a zero-coupn bond you can give one their money back sans no return for 5, 7, 10 years, and engage in
spec upside tactics to juice the returns in a rising market.

The key is you can get your money back with not even a 5 year note yield in an adverse market.....now a days who cares about that.

There has been too much upside to worry about a flat-declining market
so long as you get your money back...even if you make zero return for 5 years.