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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: uu who wrote (171)	11/13/1997 5:56:00 PM
From: John Hunt	Read Replies (1) \| Respond to of 226

Hi Addi, I feel sorry for them also ... However, you can see from the last sentence, that this person has learned nothing from the margin call and it will happen again. People should never ignore a margin call and should never meet a margin call with money ... it is telling them that they are on the wrong side of the market. John

To: uu who wrote (171)	11/14/1997 6:58:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 226

Addi, I am glad you are not on margin. You probably hold stocks in very good companies, but the stocks are just priced too high. A good house is a good house but who wants to pay twice what it is fundamentally worth? Of course you could be right. But if a year or two from now you find yourself still holding stocks that are worth less than half what you paid, don't panic then and sell. Buy more then, if the company still seems sound. But diversify into at least a dozen companies and into different industries.

To: uu who wrote (171)	11/14/1997 11:58:00 AM
From: Stingray	Respond to of 226

I'm not sure why the sell off was any more idiotic than the exhuberance that led to the market getting so high in the first place. Those who suffered the margin calls were clearly surprised by the decline but they should not have been because stocks can go down just as quickly as they go up and more so. I feel sorry for them also even though their wounds were self inflicted by going for what seemed like easy money. I worry more about what will happen to the smaller investors who have only started buying mutual funds in the last year or two and are not prepared for a bear market.