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To: Burt Masnick who wrote (51934)4/2/1998 4:34:00 PM
From: Burt Masnick  Respond to of 186894
 
Odd mention of Intel in article on investing.

"You can tell a lot about a person by their investments,indeed," says Linda Barbanel, a New York expert on the psychology of money. "It's to gratify unmet needs in many cases." In her book Sex, Money & Power, Barbanel divides people into four money types:

The Four Money Personalities
1. Keepers: By nature insecure, keepers strive to hold on to their money. They lean toward conservative investments such as CDs, bonds, insurance and the odd mutual fund.

2. Power Seekers: These macho investors seek financial glory and status. They thrive on tips from other power seekers and have the stomach for futures, options and contrarian stocks.

3. Love Buyers: After establishing a good relationship with their broker, love buyers attempt to shore up self-esteem with blue chips and promising securities likely to bring them monetary fulfillment.

4. Freedom Searchers: The rebels of the financial field fear dependence and therefore eschew bonds and mutual funds. Freedom seekers choose stocks of companies they personally like and disregard professional investment advice.

"It's helpful to know what your money style is," Barbanel says. She advises building an investment strategy that matches your money personality and finding a broker who understands your type. In addition, spouses of different money persuasions should keep separate portfolios.

Marketing Generates Heat
The same group-think that can buoy or sink the Dow Jones Industrial
Average also plays on a smaller scale. "What's attractive to investors is immediate track record," says Herb Froehlich, a registered psychologist and senior vice president of Interstate Financial Group in upstate New York. "That is why many people buy high and sell low." An investor focused only on recent stock performance, Froehlich says,
worries she's missing out when a stock rises, and stuck with a loser when it drops. People want to invest in what's hot, and companies spend zillions to create the perception of sizzle.

Fund giant Fidelity manages dozens of mutual funds, some of which are bound to be generating great numbers at a given time. By rotating advertisements to feature its stellar funds, Fidelity fosters a winning image. As with mutual funds, consumer ads for, say, Coke and Intel generate positive sentiment about the companies' stock, as well as sell pop and chips.

Non-consumer ads, such as those "ADM-Supermarket to the World" spots during Sunday morning politics shows, are designed to boost corporate awareness and generate positive karma. Likewise, annual reports would be printed with black ink on newsprint if companies didn't seek to court investor interest. The money-minded emphasize that obeying emotions is OK, as long as they don't override investment goals-namely how much money you want and when you want it. Avoid the temptation to get carried away by Wall Street's current exuberance, says Tad Crawford, author of The Secret Life of Money and publisher at New York's Allworth Press. "If people want excitement, the stock market is not the best place to look for it."