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Author: JeanDavid Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: IRA - How to invest it? Date: 2/20/1998 8:53 AM
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<First, risk and reward go hand-in-hand. The higher the risk, the bigger the return.>

I do not think I infer the same thing as you meant. While risk and reward go hand-in-hand, I disagree that the higher the risk, the bigger return. If it did, we would all be off to the Halifax stock exchange to buy Ziegletics and other high risk stocks. (I wonder if 60 years of data show that investing in the Vancouver stock market would give a 10.7% (or whatever it is) annualized rate of return: somehow I doubt it).

I guess it is my view that, while betting on stocks can be a high risk enterprise, in contrast, investing in stocks has a lower risk. I guess I would rephrase what you said as: The higher the (apparent) risk, the bigger the (potential) return.
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