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To: Scotsman who wrote (27455)	1/3/1998 11:13:00 AM
From: Paul A	Read Replies (1) \| Respond to of 50808

this goes for ANYONE, including you and I. If the DOW were to shed 1000-2000 points, would you start buying? Hell no.. youd run like hell and wait for the dust to settle.. We the individual investor would do more damage in a panic than the funds in the long run. Most young investors with 401k and mutual funds have been taught that its not going to keep returning ridiculous profits, and that they have to think longer term 10-20 years.... Do you or I think in terms of 10-20 years? Hell.. I think hours! I wont even hold cube overnight unless I pick it up at the end of a day where it sold off...

To: Scotsman who wrote (27455)	1/3/1998 3:04:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 50808

OT To Scotsman and Paul A, First, Scotsman: Thanks for your reply, I better understand the concerns that you have. Some comments. 1. Re analysts and KO: These are the same guys who get beat year in and year out by both the Dow and the S&P 500. Relying on analysts is usually dangerous to one's wealth. 2. Re money fleeing funds/market when people retire. First demographics in North America are in the market's favour for at least another decade - front edge of boomers turn 65 about 15 years from now. Second, those who live to 65 will probably not die before their mid-80s. They'll have another 20 years or so on average to provide an acceptable life style for themselves/spouses, etc. I wouldn't expect them to remove all their money from the market on their 65th birthday, if ever. 3. I suspect most people who are invested in funds have very little education related to the markets. Their involvement is mostly checking fund prices from time to time (quarterly statement or occasional newspaper listing). If the market rises or falls, they're much less likely to change their strategy than many SI posters - some of whom seem to change their strategy between frequent posts. 4. There are pros and cons to buying the index vs actively managed funds. Among the PROs of buying AMEX:SPY for example is that one pays less taxes (churn rate is near zero) and gets better performance than 90% of active fund managers (last 3 years, about 80% last 3 decades). For those people who have a life other than the market, getting a market return consistently is probably as good a strategy as most; and a much better strategy than having none at all. Ian.

To: Scotsman who wrote (27455)	1/4/1998 10:50:00 AM
From: Ed Newman	Respond to of 50808

Interesting thoughts about Index Fund funkiness. You have shown once more how when Everyone sees a sure thing, it no longer becomes a sure thing. The Market is self-correcting. Index funds are trendy, but have their own achilles heel. I do not care for them.... just like I have a distaste for totally controlled building environments with no windows that open. I like fresh air, and the uncertain effects of wind. Have a great new year. Go Cube....