Monday, December 8, 2008

We were fated to pretend...

Finance teaches us that in terms of stocks, the greater the risk the greater the return. Small cap stock funds are more volatile than Large cap stocks and especially more than investing in a index fund. Growth funds, particularly aggressive growth funds typically invest in IPO's and start up companies. How risky is that, the company is just entering the stock market for the first time and you decide to pour your money into them. They must have done something to convince you that it was worth it. See the thing is that like risks in our daily lives, the ones with the greatest risk have the least supporting evidence convincing you that you won't just loose it all. The greatest risks in our lives are called dreams. Unlike the stock market what we are risking is more valuable than money, its emotions, time, and it all comes down to an opportunity cost. I think we all need to dream on...and if it's bitter in the start then its sweeter in the end.    

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