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To: Dave who wrote (5593)2/10/2001 4:29:59 PM
From: Michael Watkins  Respond to of 8925
 
Dave,

Interesting comments.

Your recent posting
of the most active stock charts, prompted me to put
together a quick table on most of these stocks, showing the
average return over the last few years. Amazingly, it
really is pretty good! The only investors that are
definitely getting decimated, are the ones that bought at
the all time highs.


I think we should add one more group to the mix of people being hurt - long term investors turned traders.

I'm not advocating one style over the other, but I am certain that a whole bunch of folks that came from the buy and hold world of mutual funds came totally unprepared for the world of active portfolio management and trading.



To: Dave who wrote (5593)2/10/2001 5:25:39 PM
From: Mark Davis  Read Replies (1) | Respond to of 8925
 
Sadly, I believe the list you present does not accurately measure real world performance.

Many more people and dollars came on board closer to the top of the market than the bottom. The lucky few that were invested in 97/98 may well have reinvested even more near the top, while failing to cash in gains due to the usual tax and "its going higher" concerns.

No, I think the average retail 'investor' has been smoked.