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To: Jim McMannis who wrote (62171)	8/9/1998 6:12:00 PM
From: Fred Fahmy	Respond to of 186894

Jim, Not everyone who buys and holds buy all of their stocks at the absolute top <ggg>. Your examples are a little extreme. Most long term investors subscribing to this methodology are cost averaging all the time. Start prior to 29 and put $1000 into the market every year ignoring the ups and downs (that's what buy and hold and long term investing is all about) and I think you would be pleased with the results). Buying heavily right after major crashes is a great time to accelerate cost averaging. Buying and holding works much better if you maintain some liquidity to take advantage of dips to add to your positions. Buying and holding does not mean buy and holding and holding and holding. It means buying and holding and buying more and holding and buying more and holding. <The scary thing is that the charts look very similar leading up to the '29 crash as they do now.> And what about the economy....how do they compare now and then?? Follow the interest rates and inflations rates...they will set you free. Every time the market has tried to crash recently it has rebounded in short order....why?...the reason is very clear....interest rates are low and heading lower. The "charts" don't control (or even warn us for that matter) whether or not we are going to have a major crash, macro-economic fundamentals, however, may. FF