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To: waverider who wrote (27062)	8/5/1998 1:53:00 AM
From: VLAD	Read Replies (1) \| Respond to of 95453

DH, I have no problem with your advise except that I should have followed it 4 weeks ago when I thought I was an astute bottom fisher. In the short term the joke is on me but in the long term (I'm not talking years now) I still feel this sector will appreciate back to more rational levels by the time we reach the first frost. There was a time when if you did your homework and made your stock picks based on fundamentals you could do well. Seems like the past year stock prices have ignored fundamentals and momentum investing has reaped the highest returns. It has always been my style to buy stocks that have been sold off unreasonably and have solid fundamentals. I still feel that this sector is where the bargains are. One last point. Many of these companies are sitting on a ton of cash. Don't think that if the carnage continues they won't decide to buy back shares on the open market. A company like Cliffs could cut it's float by 1/4 at todays prices if it threw most it's cash to a share repurchase.

To: waverider who wrote (27062)	8/5/1998 3:54:00 AM
From: pt	Read Replies (1) \| Respond to of 95453

Quite a bit "over 3 weeks now!" Look at the story in the WSJ from Thurs 7/30. They presented a chart of "average decline from 52 week high" broken down by market cap. All categories are down; largest only down around 11%; smallest down about 43%. (Trying to do this from memory, so don't quote me; check out the article.) Also, all of the gain in the S&P 500 the past year was attributable to only 74 companies. My guess from that is over 1/2 of the S&P 500 could be down over the past year. Re: bear markets, which we've been in for over 3 weeks now, market extremes can last 2-3 years Paul

To: waverider who wrote (27062)	8/5/1998 8:28:00 AM
From: Intel Trader	Respond to of 95453

DH, you described one strategy: ie cut losses at 10%. Here is another. For those who have the capital (notice I didn't say buying power) and have conviction that things will improve, and have a tolerance for time, one can average up. That has to be at the right time, with an eye out to strategically manage one's resources. It seems hard to me to believe that a person would commit 50, 100 or 150% (margined) or more in any one sector. it

To: waverider who wrote (27062)	8/5/1998 10:22:00 AM
From: Gottfried	Respond to of 95453

DH, history on bear markets is at Vanguard's site... Since 1956, nine downturns are generally regarded to have been bear markets with declines of 20% or more, as measured by the Dow Jones Industrial Average (see Figure 1). Thus, bear markets have occurred, on average, about once every four to five years. The average duration was 12 months -- ranging from as short as two months to as long as nearly two years. vanguard.com GM