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More on Risk: Response to James


James writes:
"The fact that it (Reischauer's example of risk)is extreme, not normal or not representative doesn't change the fact that it will occur for millions of people".
I must admit, this statement befuddles me. Is he saying that millions of people will invest 100% of their savings in 100% stocks, without any regard to safer investments? Hardly.
I am saying that the discourse on risk would be more productive if we use examples that are more typical of investments used for 401(k) and IRA's.

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