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Thank you for jumping in on this discussion. You offer a viewpoint that is cautious, seemingly reasonable, and needs to be considered.

That said, I'll stand by my numbers as being very easily documented reports of what has been widely achieved and what can reasonably be achieved. I know the literature. I personally know investors who achieve those kinds of returns, and I'm one of them.

That Lokicious is scared of risk is undeniable. That I am scared of risk is undeniable. He chooses to manage risk by avoiding it and trafficks almost exclusively in cash-management vehicles (CD's, TIPS, T-Bills). I choose to manage risk by managing it, and I traffick in bonds, especially junk bonds, and I use cash-management vehicles only for what they were intended to be, a small portion of one's total portfolio.

That's the difference. The two of us manage risk differently. There is no flame war. There is an ongoing discussion of alternative approaches to risk management. Furthermore, I make the assumption that each reader will decide for her or himself which approach --or yet other ones-- best suits their needs and abilities. There is no one, right way to do any of this stuff.

If you, Dan, and you, Lokicious, are scared of investment risk, don't lie to me that you aren't using that fear to set self-limits on your upside returns and those of everyone else. That is a "sour grapes" argument, that is classic, "egalitarian" thinking, and it is dispicable. Any prudent person is scared of investment risk. It's how each of us chooses to manage that fear that distinguishes one investor from another, the differnces are just differences. Nothing more.


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