Replies to post #13103 on Profunds index and sector trading (PRO)

[was Steve]

tomorrows newspaper would work. i havent been able to find it in any stores yet though. (ggg)

[Namiar]

<<Ah the Holy Grail, the Pot of Gold at the end of the Rainbow; think about it, i would surmise over a million minds have bashed the wall to enter into where the perfect system is, and not one has done it.>>

You get into personality types, Welles.

Intelligent traders (like us!!) know that it is pointless to search for a perfect system, and we accept some degree of risk. We who primarily trade indexes take on less risk than those who mostly trade individual equities.

But then there are some people who want absolutely no risk (or extreme minimum) involved with their money. There are probably alot more of them than there are of us. When I worked for the government, the TSP (Federal govt version of 401K) had only 3 choices - an SP500 tracking fund, a corporate bond fund, and a goverment securities fund guaranteed not to lose money. By far and away it was the latter that had the most assets.
I suppose that it is these people who keep alive the search for the holy grail. And when shysters offer "guaranteed" returns significantly greater than the prevailing money rates, it is some people from this group that get sucked in.