 Quote:
|
You may or may not be correct, but there is nothing in your Buffett quotation that leads to that conclusion.
|
No, nothing in that quote.......thanks for pointing that out so nobody gets confused.
Here's what I'm talking about. When I was accumulating, I never thought volatility equaled risk. Heck, more volatility usually meant I could pick up more shares of whatever I was looking at for a better price, so I actually liked the volatility.
Now I'm coming around to the fact that volatility does in fact = risk when you have to draw down the portfolio, and I'm also getting older and I'm just not as brave. I actually never really thought about the mechanics of drawing down the portfolio at all when I was saving like crazy.
Quote:
Well, I though this info was interesting, and pretty "new" and timely:
What we are seeing is a huge repricing and evaluation of risk, correcting for problems of the past. I don’t know of good credit propositions that are going unfulfilled. There’s lots of cheap credit for sensible deals, which I don’t define as anything that happened over the last 12, 18 months. A lot of things that didn’t make sense are being washed out of the system. It is painful for bad decisions. Comparatively, this is not a credit crunch. In 1982 the prime rate was 22% and money was very expensive. In the late 60’s, we made a sound deal there wasn’t any money to be had. That’s not the case now. The Fed has opened the window, and rates are down. It doesn’t mean there won’t be a major recession.
|