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To: BGR who wrote (70633)	10/20/1999 9:13:00 PM
From: re3	Read Replies (1) \| Respond to of 86076

i don't trade my house every year, you are right in that trading should be done infrequently...but i think if one has been a long term holder of the s and p index, they'd be pretty happy, however i'd suggest they make their first trade in years(decades even) and sell... certainly tax implications might play a factor, if this was so, and they were nimble they should buy some poots or short some related index... if the s and p gets sliced in half, will you be happy ? my amigo bought cpq for his retirement at 50 , will he see fifty again ? ike

To: BGR who wrote (70633)	10/20/1999 10:40:00 PM
From: Oblomov	Read Replies (1) \| Respond to of 86076

BGR, Cash was a big winner during the 25 year periods 1929 - 1954, and 1963 - 1988. There were many people warning of potential calamity during the late 20s and during 1987, but they were ignored for the most part. There is rarely a consensus of opinion in any market, and the moments in which there is a consensus are usually turning points... Also, note that real estate is not as liquid as stocks. Illiquidity and high transaction costs create an aversion to frequent trading. AA

To: BGR who wrote (70633)	10/20/1999 11:19:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 86076

"Tell me, do you trade your house every year? If not, then what's so different for equities " It's a poor analogy, because a house has a utilitarian purpose. I can't live in shares of stock. Also, transaction costs are much higher. It runs at least 6% to hire a good broker to complete the transaction, as well as numerous other closing costs. But even so, there are many short term traders of single family homes. If one could turn over a house on demand for a fee of $25 or less we'd probably see a lot more. The two asset classes really aren't comparable. Regards, Barb