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Subject:  Re: IRA - How to invest it? Date:  2/20/1998  8:53 AM
Author:  JeanDavid Number:  1874 of 90148

<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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