The Bubblemeister panicking?

JayHecht at aol.com JayHecht at aol.com
Wed May 19 06:57:51 PDT 1999


In a message dated 5/17/99 8:17:22 PM Central Daylight Time, TLEHMAN at lor.net writes:

<< Let's say your late 40's or early 50's

and you have socked away a considerable amount in a 401-k. Even with a

balanced portfolio you realize that the equity portion of the portfolio has a

considerable downside risk---when does it make sense to shift out of equities

and take a nice safe 5 3/4% or more return. If that option is available to

you. If business planning is strictly a short term global shell game; maybe

you ought to hold on to your pea. >>

Tom the problem is that the "data" suggest a new paradigm:

If you look at the:

standard deviation / mean ( a very, very simple measure of relative riskiness)

for the S&P 500, its value from 1989-1998 is about 1/3 its 1960-1998 value.

Everybody has CURRENTITIS!!!!

Jason



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