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Conrad

07/21/02 7:06 AM

#4146 RE: nitelord #4137

Nitelord, you wrote:


I like everyone else am attracted to etfs b/c they remove stock specific events, and almost by definition have fairly good fundamentals thru diversification...

You mentioned that this: etfs b/c might work for de alternative AIMs like vortex etc.

Could you explain what you meant here?

Curious Yellow,

Conrad
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Toofuzzy

07/21/02 10:51 AM

#4152 RE: nitelord #4137

Hi Nitelord:ETF's And Mutual funds will just TEND to be less volitile and trade and cycle less than individual stocks.

But that depends on which stocks you pick (high or low beta). By the same token it depends on whether you use a biotechnology ETF or a REIT ETF to AIM.

Like you say one advantage is that you avoid the stock specific risk especially of the stock going to zero!

Also picking a low beta individual stock does not mean that the company will not be volitile. It still may be in the future due to stock specific stuff or the total stock market like we are seeing now.The high beta stocks will be even more risky for the most part.

Is it not good enough to make 20%/ year(just to pick a number), is it necessesary to TRY to get 40%? At what additional risk?

That is not to say I have anything against AIMing individual stocks especially if you own 10 of them and they are all in different and diverse industries. I supposed if you were just starting out you could buy one new company per year and use time to help you to diversify.

But I have a habit of picking good industries but the wrong company in the industry.

Toofuzzy

Take the road less traveled. It will make all the difference.