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

To: Ron Bower who wrote (4995)	9/12/1998 9:53:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78476

I still see what I believe are lots of good values in real businesses. This week should have been - IMO of course- a time to reassess, a time to add to positions in good stocks, and a time to sell out of positions where one's fear exceeded one's confidence. That's what I've been doing. My tactic has always been to try to buy undervalued stocks when I realize they are undervalued (to my mind anyway -g-). Assuming that the market is on a downtrend, and that good, cheap stocks will only get cheaper, my experience is that it is better for me to lag into positions as the stocks I follow decline, than to try to time a bottom, or to wait for a good exogenous event (e.g. lower interest rates) to occur. Actually, I'm kind of used to it, since it seems like the stocks I buy all decline after I buy them, even in a general bull market. I don't like this, but I accept it and try to deal with it -g-. JMO, Paul Senior

To: Ron Bower who wrote (4995)	9/12/1998 10:52:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 78476

<<IMO investors have been used to the growth of recent years and will strive for a better return than most bonds rates offer.>> The big problem with this thinking is that 1,000 of Forbes 1,000 individuals control ~ $5,000 Billion in personal assets, and when they decide to lighten up 20% on equities, then even if 10,000,000 "average investors" spend their last collective penny buying stocks, it's still not nearly enough to make much difference: 10,000,000 "average investors" * $100,000 of spare yet uninvested cash = grand total of $1,000 Billion, which is clearly an overestimate ... You guys keep buying, you should ask yourself: who's selling?