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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (864)	11/22/2000 3:09:01 PM
From: Joshua Corbin	Read Replies (2) \| Respond to of 74559

He didn't say panic selling. he said people are forced out--by margin calls or by pressing needs for money--near bottoms. Okay, call it max pain. Margin call corrections are a perfect example of how Americans don't really believe in LTB&H. People are shown long-term charts as a way to get them hooked on the market. Then they ignore what they just learned and start actively trading in the usually fruitless quest to beat the market. Americans use options, margin and speculation like junk food. They eat too much and become overweight. Then checkup day comes and they get some bad news. It always happens. Those on the sidelines with cash then move in and buy. Don't forget the dirty little secret about bear markets. Some LTB&Hers love them because the whole world goes on sale. Bull markets aren't as good for portfolio-building because everything's more expensive and all these people are trying to pump National Student Marketing, Iomega or Boston Chicken. There's an entire world of dollar-cost averaging that sits completely unknown to SI-types. Not only do you have the usual DRIP plans, there's $2 purchase commissions at Sharebuilder and the $10 flat rate at Buyandhold.com.