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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (24298)	8/14/1998 7:46:00 AM
From: HairBall	Respond to of 94695

Kip: How's it going. As usual, I find your post interesting, thanks! Regards, LG

To: Kip518 who wrote (24298)	8/14/1998 7:55:00 AM
From: Moominoid	Respond to of 94695

Prechtor's ideas are crazy? The article was very interesting. I ahdn't heard of him before. One mistake he makes I think is to look at dividends rather than free cash flow. Companies are minimizing dividends for tax reasons. On the other side the bulls are exaggerating value by looking at earnings rather than cash flow. Hence my 4000 statement is halfway between the bulls and Prechtor. Nothing magic about 4000 of course - it's about double the 87 bottom which would seem right. <Question> If you could get people to remember one or two things about investing, what would they be? One thing: Don't do it. Again he exaggerates. The sensible advice I think is to tell people to invest in diversified funds that will include cash, stocks, bonds, property, forex etc. all managed by some competent manager. Unless you know what you are doing and are prepared to spend the time. Again the Fool bull extreme is at the other end of the spectrum.