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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Boca_PETE who wrote (5722)	7/3/1998 3:16:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 42834

Pete and All: Brinker's position on dollar cost averaging out in the face of a bear is crystal clear in my mind. Not a chance. He has answered this question before. If you were convinced that the bear was coming, why would you then choose to sell into weakness in order reduce the possibility of locking in your gains? The antithesis of this logic is the "gift horse" in a bull market. You pull the trigger in the face of a "gift horse." Yea, you might miss a couple of percentage pointsm of catching the bottom, but the important part is to make the right decision in a timely fashion and not to get too cute. If dollar cost averaging were followed in the face of a bear, how many here would continue such a program after a 20% or a 30% or a 40% drop? Most likely, you would have bailed completely by some point when you had reached your maximum pain threshold or you would have decided to ride the bear out because it was too late. Neither of those scenarios is particularly appealing to me.