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more about long-term gains than short-term uctuations in our portfolios Today, the average holding period is below three years The same is true for stock fund managers A generation ago the average domestic stock fund had a turnover rate of around 30 percent Turnover refers to the speed with which a fund manager sells out of all his holdings A turnover rate of 100 percent means the fund is likely to replace all of its stocks in one year A turnover rate of 33 percent means it may take more than three years for a fund to turn over all of its investments Today, the average turnover rate for a stock fund is around 113 percent (You can look up a fund s turnover rate and other statistics on wwwmorningstarcom) More and more, investors have become pick and rollers This simply means that this group of investors is willing to sell out of an investment quickly if: (a) bad things start to happen; (b) its price falls sharply, say, 10 percent or more; (c) its price rises su ciently to book a quick pro t; or (d) a better investment comes along In the heyday of the late 1990s Internet investing craze, day traders, who sold stock within minutes of buying in order to book intrahour pro ts, were the icons of this philosophy of investing Today there are more moderate examples of pick and rollers, such as swing traders, a more reformed version of day traders who hang onto stocks for days and weeks before ipping out While a buy and holder is willing to ride out short-term troubles, pick and rollers would rather cut their losses soon and move on to better choices While buy and holders consider pick and rollers to be impatient, if not irresponsible, pick and rollers think their strategy makes a lot of sense Why hang onto a stock for 10 years if you see something better to invest in now Why hang onto an investment that s simply treading water for decades at a time Why sit on dead money Why not take that money and invest it elsewhere in something that is working Buy and holders would say such a strategy triggers capital gains taxes and brokerage commissions sooner rather than later A pick and roller, on the other hand, would argue that these taxes and fees can be overcome by making better underlying investments Political correctness says it s important to buy and hold But even though conventional wisdom says buy and hold is the way to go, the majority of investors don t really practice buy and hold investing anymore Historical odds say it s harder to pick and roll, on average, than to buy and hold For starters, by turning over your portfolio frequently with a pick and roll strategy, you create transactional costs such as brokerage commissions and fees (which we will address in greater detail later in the book) These costs make it that much harder for an active investor to beat the averages Moreover, it is di cult to time the market perfectly Long-term studies of the performance of mutual fund investors would seem to bear this out.



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One of the best image editors around is called Paint Shop Pro, from Jasc (wwwjasccom) If you re not already using Paint Shop Pro, you can try an older version of the program by downloading a free trial at the Jasc Web site I d say that it has about 75 percent of the features found in a heavyweight image editor like Adobe Photoshop, at a much lower price and a much easier learning curve Other options include Adobe s Photoshop Elements another outstanding program as well as Ulead s PhotoImpact I m a creature of habit and continue to use Paint Shop Pro since I ve used it for years, though I admit I m slowly starting to gravitate toward Elements on occasion One great reason to use these programs is the ability to browse your images visually Paint Shop Pro s Browse tool is shown in Figure 9-3 Browse lets you see the images on your hard disk

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These methods provide one way to build application-managed security on top of the existing security infrastructure of the Web tier We ll revisit these API methods in the section Container-Managed Authorization and the Concept of Roles with an example of how to integrate container-managed security elements into application-managed security Let s examine each of the four implementations of container-managed authentication in the Java EE Web tier

Basic authentication has been around since the beginning of the Web Indeed, it was defined in the HTTP 10 specification way back in 1996 The basic authentication scheme also introduced the notion of realm which you saw earlier as <realm-name> in the webxml excerpt A realm is an opaque string interpreted by the server to identify a data store for resolving username and password information The implementation of the realm concept is not standard; different containers implement it differently In the Apache Tomcat container, a simple plain text XML file is used to configure the UserDatabase realm, the <TOMCAT-HOME>/conf/ tomcat-usersxml file:

Fig 4-7 Hazards of Picking and Rolling, 1984 2004 This chart shows the annualized returns earned by stock fund investors between January 1984 and December 2002 Due to poor timing decisions, average stock fund investors have not only badly trailed the S&P 500, they have not even kept up with the historic rate of in ation

<tomcat-users> <role name="trainer" /> <role name="user" /> <user name="administrator" password="admin" roles="trainer" /> <user name="edburns" password="pass" roles="user" /> </tomcat-users>

The Sun Java System Application server provides file, admin-realm, and certificate realms, as well as support for JAAS (Java Authentication and Authorization Service), all of which have their own configuration mechanisms Oracle s OC4J (Oracle Containers for J2EE) has its own jazn-dataxml configuration file which is also a JAAS Descriptor All of these files contain realm definitions with associated users and roles

FIGURE 9-3

Part III:

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