Forum Archive Index - April 2000

[J & E Fraser <jefraser@ihug.co.nz>]

  Hi Kevin
saying the trend is, the Nasdaq is outperforming any index and imho will
continue to because the growth is there. The odds are  not in your
favour in tech/e-firms. 70% are expected to fail or be aquired. So you
use risk management tools to improve the odds. Some traders will not
invest more than 2% of portfolio in any 1 stock; the higher the
perceived risk, tighter your stop; have a plan for every trade, an in &
out price and execute it etc etc.
The market is always right. If I invest against it, I am saying I know
something that the market doesn't, or, I am trying to pick a  top or
bottom, ie, gambling.
You dont want to follow the crowd? Say  I own a stock which is
plummeting, sellers running for the door, I would be crazy to go against
it and hold.  How far would you watch it fall? Take small losses. Get
back in when  it turns. Going with the crowd in that situation  is ok
for me.

I don't invest in funds because I enjoy doing the investing myself. But
imagine if you wanted to split $10k into Chinese internet,  German
auto's, Thai agriculture and  Malaysian transport. A fund would be far
easier.

Hey, if you find that road to riches, can I carry your bags?
j



  Jesse I'm trying to understand what you are say. Are you saying that
since Tech
  stocks are what people are currently investing that this is the trend.
So you
  would be investing in Tech stocks as the odds are in your favour.
Please correct
  me if l am wrong.
In my opinion the road to been rich is not to follow the crowd. If l
want to
  follow the crowd l might as well give my money to the fund managers. I
believe
  in accumulating real assets which generates positive cashflows and
reinvesting
  the returns so the returns generate returns. The assets can be shares,
real
  estate, business etc.
  My goal is to generate enough passive income from these assets so that
you are
  free to pursue what ever you want to do and not worry about money. I'm
not sure
  if Tech stocks fits into my goal.

  Kevin





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