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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (38890)	2/15/2003 5:54:10 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 71349

Hi Jim: I have around 5 financial advisors who I provide tax advice and services to. Was just speaking to one yesterday. I can state unequovically (sp) all 5 are still of the philosophy of long term buy and hold with diversification. Although this one is coming around on secular bear and bull markets. Now I understand the diversification to some extent (I don't agree with the way its teached per se as i feel there are times to be completely out of some sectors in the diversification they teach, like reits, equities and treasuries @ this time) but buy and hold should just be thrown out the window. Its been the basic teaching since I guess the secular bull starting in 82. I think its from Lynch and Magellan's performance and then added in with the equity returns outpacing all other investments since prior to the 1929 crash (hey I've sat thru some of the presentations). This teaching ignores some key facts like the change in the dow components, the 23 years to make it back even in the dow and the age of the investor) So you know we still have all the financial advisors preaching don't sell, hold for the long term and be diversified (what is the typical growth fund down 50% in the last 2 years). I always like the one, don't sell now you'll miss the next move up (hey thats probably what will happen to me if the market takes off next week). I had one client pull all his money out of the market in August (right at that local bottom) and his partners kid him about it. Watch by this August they will be wishing they did the same.