With equity investments there is a direct relationship between popularity and risk. The more popular a stock or an industry sector has become, the higher the risk an investment in that area carries. Risk builds in any market as money pours into a particular vehicle. The more the money moves in a particular direction, the higher the risk. Risk is always a moving target, where as concepts such as Beta perceives it as static. In the 1950's it was accepted wisdom that bonds where a low-risk investment, but the 1970's proved this was basically nonsense. The perception of risk and real risk are entirely different things. Market psychology and mechanics make it that way. As people run from the risk that they see in the rear view mirror they tend to rush toward the risks they can not see. The best way to insulate your investments from risk is to avoid the crowd. ---Richard Losch