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I'll put it this way.

I first came in in the late 70's, dollar cost averaging into a front-load mutual fund using a letter of intent to keep the fees down. It tanked. My mentor said, "Stocks go up and stocks go down." So I stayed. And it went up.

Then I got into no-loads. Saw the 1987 crash and lost a lot more than then I have up to now. Missed a buying opportunity for MSFT (the big one that got away). Stocks went back up. Started a TSA through the American Funds (New Perspective, committee managed). Saw more tanks in 91(?) and 97. Yawn. Been there done that got a T-shirt seen a shrink.

Guess what? That TSA has taken the bulk of our savings, and rewarded us for doing so. Retirement accounts are where most people's money is, and many have no option but to be in mutual funds. The tech bubble may be poked, but everything else is down a tad--nothing to get excited about. That includes diversified mutual funds.

But of what's left, I put a small amount into stocks. Currently I'm a bit up in CSCO, way down in ATHM, and way up in WM and TDW. SCH down a bit. Even with my single stocks I'm about par for the course.

The key? Buy CSCO, but buy other things that are not tech. Or buy a mutual fund (for worldwide investing) plus an index (for at home stuff) and sleep at night.


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