How does it make sense to say that you're protecting capital of $10,000 by giving $500 to a salesman who in five years promises you $9,500? You don't get your money back; you get what is invested back. |
In the highly tradable sectors you have seen a lot of convergence in how stocks perform by sector. The classic example is Nokia, Ericsson and Motorola. They all suffer and boom together. |
Stable-value funds can be a good, safe place to park cash where you will get something better than a money market and less than an intermediate bond fund. |