12-15-2004, 09:07 PM
Hi,
Any investment strategy requires that the investor look at what he/she is trying to accomplish. Whether it is the 'put it all on black' recommended by DeeBye or CDs, the value of the investment is the sum of potential payoffs multiplied by the probability of each payoff. Any investment with a positive value could be a 'good' investment. The rate of an investment is the value over time. And it is the rate which is often best correlated with the risk.
And any pension fund that is tied to only one company is a fund managed by morons. Especially if the company holding the fund is the company paying for the fund.
--Pete
Abramelin,Dec 15 2004, 01:54 PM Wrote:You can lose money from long term investments;remember Enron? All those retired people who relied on their pension funds to pay the pensions;now they have no money left to live...[right][snapback]62915[/snapback][/right]Yes. You can lose money on any investment. That is why some things pay better and some pay worse -- some are riskier, some safer.
Any investment strategy requires that the investor look at what he/she is trying to accomplish. Whether it is the 'put it all on black' recommended by DeeBye or CDs, the value of the investment is the sum of potential payoffs multiplied by the probability of each payoff. Any investment with a positive value could be a 'good' investment. The rate of an investment is the value over time. And it is the rate which is often best correlated with the risk.
And any pension fund that is tied to only one company is a fund managed by morons. Especially if the company holding the fund is the company paying for the fund.
--Pete
How big was the aquarium in Noah's ark?