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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76078  
Subject: Re: Awesome retirement investing tip Date: 2/21/2000 4:39 PM
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Recommendations: 18
{{Considering the fact that the Rule Breaker has averaged over 60% since 1994, hoping that it will average over 18% is a risk I am willing to take despite the fact that 1994-2000 is a short time period.}}

It's 1965. "Wow, the stock market has doubled in the past 5 years. It's tripled in the past 10! The DOW is at 1000! I'm putting everything in stocks!"

Result: The DOW stays under 1000 until 1982, giving 1965 investors no return for 17 years.

It's 1973. "Wow, those Nifty Fifty stocks are a can't miss! Most of them are up 20 to 25% year over year, some have doubled and tripled and even quadrupled in the past 5 years! I'm putting all my money into them!"

Result: The Nifty Fifty, aka (the high P/E growth stocks) crashed. Walt Disney went from $57 to $4 per share. The other 49 did only marginally better. Some, like Avon and Polaroid have never come back.

It's 1979. "Wow, inflation has been over 10% for the past 5 years, and it keeps increasing! It's at 17% and climbing! I'm putting all my money into short-term CD's, and rolling them into even higher paying instruments with every redemption!"

Result: Inflation crashes during the recession of 1980. Today it's at 2%.

It's 2000. "Wow, those RuleBreaker stocks have gone up 66% a year for the past 6 years. I'm putting all my money into them.!

Result: ???
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