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To: GRANOLA who wrote (56607)	8/6/1998 12:11:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

<ot>Suckers' strategy- Buy High Sell Low. Granola: No idea about these rumors but I have made some good money trading on rumors in the past but not lately.Who knows what is going on. But here is an interesting report from last night from NRB as to how the 401K investors have reacted lately to the market machinations. Source:NRB 8/5/98 Interview: 401K Investors React To Market Uncertainty DARREN GERSH, NIGHTLY BUSINESS REPORT, CORRESPONDENT: This is Darren Gersh in Washington. After waiting on the sidelines most of the day, many individual investors jumped in right before the closing bell. Fidelity (NASDAQ:FSBI) and T. Rowe Price (NASDAQ:TROW) both reported call volume picked up late in the day. Online broker DLJ Direct also reported heavy afternoon trading. But by-and-large, investors stuck to the mantra of the bull market. MAN ON THE STREET: I've been watching it with some concern. But I'm in it for the long term. GERSH: But in the longest of the long haul investments, the 401(k) plan, some investors are showing signs of impatience. Stacy Schaus tracks 401(k) transfers for Hewitt Associates. Last Thursday when the market was up, Hewitt reports 401(k) transfers more than doubled with money flowing into stocks. On Friday the market fell and transfers more than tripled with the money headed for bonds. Monday was an average day. But Tuesday, 401(k) transfers again doubled as investors fled to bonds as the stock market sold off. STACY SCHAUS, 401-K INVESTMENT CONSULTANT, HEWITT ASSOCIATES: So in other words, they're selling low. And our data over time, over the last year, has also shown when the markets are moving up, that they're buying high. GERSH: It is possible that some investors are merely locking in gains. And the activity involves a small fraction of those holding 401(k) plans. Still, Schaus thinks this isn't the way long term investors are supposed to operate. SCHAUS: It may show you that people are market timing. And market timing, over time, and through all the studies that we have seen, has shown for the mass populous, it's not a good way to go. They are going to hurt themselves. GERSH: Experts have debated whether typical 401(k) investors will stick with the market through thick and thin. Pension expert Dallas Salisbury says it's important to remember most 401(k) plans issue quarterly statements. And the market hasn't been down for an entire quarter in many years. DALLAS SALISBURY, PRESIDENT, EMPLOYEE BENEFIT RESEARCH INSTITUTE: And so the first time we're going to get a real indication is when we have a market downturn that goes over a quarter. So that they actually get a statement that says, good gosh, I lost money. GERSH: And most 401(k) investors won't get their next quarterly statement until the middle of October. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.