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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: Oeconomicus who wrote (17790)3/19/1999 3:47:00 PM
From: Roger A. Babb  Read Replies (2) | Respond to of 18691
 
Bob, I think Dow 36,000 is pure BS. But then I said the same thing about Dow 10,000 some time back.



To: Oeconomicus who wrote (17790)3/19/1999 6:03:00 PM
From: BelowTheCrowd  Respond to of 18691
 

> I guess he doesn't agree that volatility of returns is the proper measure of risk.

> He submits that over the long term, stocks are no more risky than bonds

I think it depends a lot on the holding period.

Over a 30 year period, volatility of returns on the stock tend to even out (especially where there is a dividend), though you may run into some nasty heartburn at times.

I think there is something to be said for the belief that we overprice the riskiness of stocks (or alternately, underprice the riskiness of bonds).

mg