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To: long-gone who wrote (85230)	5/8/2002 7:47:25 AM
From: long-gone	Respond to of 116836

Posted on Thu, May. 02, 2002 `Buy-and-hold' stock strategy may be outdated, analysts say By David A. Sylvester Mercury News During the past 20 years, one style of investing in the stock market has become such a sacred dogma that you probably know the litany by heart: Buy stocks for the long-term, invest in a stock index fund, and hold the investment through ups and downs. Most of all, don't worry, because stocks always beat other investments, like bonds or cash, over many years. Since the beginning of the bull market in 1982, this approach has been something of a financial miracle. There's nothing like a 650 percent rise in the Standard & Poor's 500 over two decades to convince the average investor that he or she will do best by investing broadly in the market. There's only one problem: The buy and hold approach hasn't worked for two years. Stock market index funds have plunged sharply and are down again so far this year. Bonds have far outperformed stocks, and even lowly money funds -- those that invest in short-term Treasury bills -- have produced a positive real return. (cont) bayarea.com