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To: Mohan Marette who wrote (51739)	7/16/1998 3:17:00 PM
From: MichaelW	Read Replies (1) \| Respond to of 176387

Re: ''I think in August or September we will see some kind of correction,'' Harrington said. Setup for a correction? Didn't we just have a correction? It's probably time for another. Gotta love this BS.

To: Mohan Marette who wrote (51739)	7/16/1998 3:25:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Calling these guys analysts is a hoot. Perhaps we should call dowsers hydrobotanoanalysts, or those who look at chicken guts organoanalysts. When these people produce some credible statistical evidence in support of their "theories" I will pay them some attention. In the mean time I will stay away from the Wall Street version of the Psychic Hotline. If you want to know how these guys make money, its in commissions, because the name of the game is to get you to churn. So we end up with three approaches to "analysis" (all with the same end): 1. Portfolio asset allocation. Example: okay everybody, you should be 65% in stocks, 10% in bonds and 25% in cash. (Of course, this model changes every few weeks and you are expected to make the appropriate trades to stay current); 2. Fundamental analysis. This depends on three factors: projected earnings, future market conditions and a valuation model. Since they don't tell us the parameters of the valuation model (and since I think those models are nonsense anyway), these guys' primary use is to act as an intermediary between management and investors in figuring out short-term earnings prospects. So based on valuations they will change their minds every few months. Result? churning. 3. Technical analysis. These guys are the most dangerous of all. Wrapped in a pseudomathematical jargon and equipped with computers designed to gull the gullible, they can get you turnover your portfolio with whiplash acceleration. And they have an explanation for everything. Result? megachurning. Conclusion: trading is hazardous to you wealth. TTFN, CTC