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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: nsumir81 who wrote (16849)	11/24/2002 2:44:06 AM
From: LTK007	Respond to of 30712

<It mentioned that the study researchers said that this was very critical since it could trigger massive outflows once these earlier investors would see that they were actually losing (not just gaining less).> i have read similar studies, and shows once again the average investor has bizarre behavoir patterns. As many as 50% of investors from the post 1987 era just passively watch their once huge winnings shrink and shrink and thinking "well that isn't real losses yet, and it will rally up strongly again to where it was. Remember what Peter Lynch taught me, only losers sell". But once it cracks below the breakeven, they go berserk; all of the sudden there passive "what me worry?" turns into a 5-alarm panic and they start selling hand over fist. To me this behavoir is incomprehensible , but the studies indicate this type of behavoir is commonplce.Max p.s. we also have that saddest group of all, the massive amount of buyers that entered the market from December 1999 to through August 2000, that never sold because, because their losses are so great they don't see the point. But this group will be a major resistance on all significant rallies when they say, wow, i was down 80% and now i am down just 50%, thank you thank you i am getting the hell out and staying out forever. These aspects are two key elements in a bear market having running backwards LEGs. This bear still has LEgs,imo.Max