Re: US DOLLAR CRASHING. DUMP IT QUICKLY1

I seriously doubt that will happen.  If the Dow didn't crash
during the NASDAQ meltdown and the bear market we are now
coming out of, the odds of it crashing now are slim to none.

You can always find gloom and doomers in forecasting as well
as unrealistic bulls.  It's always prudent to use common
sense with investing and never get too greedy or too over
confident.  The public is almost always late to see bull and
bear markets and the professionals know this....in fact they
track it to help them find a top and bottom in a market.
So, when the public is panic buying stocks, as in the late
90's, the pros are getting out and visa versa.

The reason for this is because the public buys or sells
financial instruments on emotion, not logic or research.  I
heard a so-called "Professional Financial Planner" on TV the
other day asking an audience to make a decision whether they
should sell a stock they owned based on her question whether
they would buy or sell it today.

Well, if they didn't really know the reason why they bought
the stock in the first place and they didn't have the
knowledge about what to do with it if it lost value, the
question will force them to make 2 bad decisions.

If you ever buy a stock, buy it when it's quiet preferably
after some drop in price and always keep a stop in place
around 15% below where you bought it.  If the stock moves
up, slowly move up the stop.  If the stock stops out or
otherwise hits the stop, the bad side is you've lost 15% of
your money.  The good side is you still have 85% left.  If
you can't stomach that, then don't buy stocks.


mrmike
  

[EMAIL PROTECTED] (LT Lee) wrote:

>A lot cheaper.
>Richard Russell, the publisher of the Dow Theory Newsletter thinks the
>DJIA will fall below 5000 in the coming bear market.