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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (4970)	9/6/1998 3:06:00 PM
From: Joseph G.	Respond to of 78507

<<Dollar cost averaging does work ...>> Dollar cost averaging does not work. It works ONLY if you know [God tells you so, or you've been brainwashed by the media] that "all stocks eventually go up". This invented "statistics" has been historically established to be absolutely wrong. Average stock goes to zero in less than 25 years. Only very few stocks survive more than 50 years without bankruptcy. It is very easy to do "academic study" and pick those stocks that are still around and waste time doing calculations of hypothetical profits. The reality is, that a severe bear market is usually accompanied with significant changes in business environment, and those stocks that appear to be good and solid businesses prior, turn out to be railroads of tomorrow. Public utilities were speculative darlings prior to 1930. Go ahead and show me how much money I could make by dollar cost averaging into them (and remember that DJUA dumps stocks prior to bankruptcy). quote.yahoo.com^DJU&d=my