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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Win-Lose-Draw who wrote (68932)	2/10/2001 9:57:37 PM
From: Doug	Respond to of 99985

Win-Loose: The number of Investors have increased and unfortunately most of them have limited abilities to read a financial statement. Because of that, it has become easier for Companies to resort to vendor financing, sales to Inventory thru buy back, Increased Receivables that are actually discounts, inclusion of Interest income into earnings thru a subsidiary net , use of excess Pension funds as Investment Capital earnings , artificial expanded retained earnings thru an inflated Buy out,. etc. These sins finally get exposed . All this and the media hype does cause Investors to ignore F.A and indulge in Momentum Investing. That is great as long as you sell your tulip to a richer idiot. When the music stops, F.A kicks in . Investors then phone their Brokers/Advisers as to what they did wrong. The lesson gets absorbed for a few years tll the pain lasts and the cycle will likely repeat. I can only recommend that Investors get to speed on basic F.A and understand the risk of following the crowd.I