To: Braddock Bull who wrote (24248 ) 6/16/1998 5:26:00 PM From: Czechsinthemail Read Replies (1) | Respond to
Brad, Trying to catch "live" money or avoid "dead" money is often undertaken without regard to risk. The problem is that what looks like it will be moving up, often doesn't and instead moves down. People typically feel more comfortable with stocks when they have been moving up, even though their risk is greater than when the same stocks are deep in their price valleys. The solace that you can find in buying something when it's really in the gutter and being spit upon is that most of those who are considering selling have done so. Paradoxically, at this point there is less real risk, even though buying at this point tends to be extremely gut-wrenching and typically feels wrong because it goes down some more. But unless there is additional bad news to drive it down further, the odds are greater that it will stay relatively flat or move up. And once you hit that point, people begin feeling more secure and start buying in anticipation of the short or long-term appreciation.
