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Monday, March 31, 1997
The Daily Dow FOOL GLOBAL WIRE by Robert Sheard LEXINGTON, KY. (Mar. 31, 1997) -- Another ugly day for stocks. The true test of discipline is how willing one is to stick by a strategy when one's getting whacked around. And as with most things, a long-term perspective helps make the short-term pain a little more reasonable. One question that pops up frequently, especially now that the market is correcting, is whether this is a good time to start a Dow Approach portfolio or whether one should stay in funds while waiting for a correction. There are two problems with such a question, though. The most fundamental problem is that it requires knowledge no one has. What's going to happen to the market next week, next month, next quarter, next year? If anyone really knew, he certainly wouldn't tell us because he'd be giving away the fortune he could make with such knowledge. And yet there's no end to the number of people who will tell you their opinions. My advice? Forget all the predictions. They're not worth much. You should invest when you're ready to start a long-term career in the market, taking gains and losses as they come and not pulling out every time the seas swell a bit. If a correction hits right after you invest, it's hard luck. Time, however, will allow you to overcome even the worst luck. The other problem hidden in the original question is the false assumption that mutual funds somehow represent a safe haven against stock market declines. Not so. Stock funds are nothing more than large baskets of stocks. You own a little share of lots and lots of stocks instead of directly holding a smaller number of stocks. You're still invested in stocks either way. I wish I had an answer about the next few months for anyone considering starting, but of course, I don't. I choose to play a different game, looking out over many years rather than short term. (In real life I may be near-sighted, but when it comes to investing, I prefer to be far-sighted.) The best course in my mind is to choose a strategy you're very comfortable with and then stick with it through all conditions. It's the only way to maintain the discipline it takes to outperform the stock market. If that proves impossible because of emotions or other factors, there's nothing wrong with admitting that to yourself and going with an index fund that will at least keep pace with the overall market and keep your costs low. Fool on! (c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool.	The Current BTD 10 1. AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %> 2. *International Paper <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %> 3. *General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %> 4. *Chevron <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %> 5. *Eastman Kodak <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:EK)") else Response.Write("(NYSE:EK)") end if %> 6. Minnesota Mining <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> 7. J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %> 8. DuPont (NYSE:DD 9. Exxon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 10. Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %> ***NOTE: FOOLISH FOUR STOCKS ARE PRECEDED BY AN ASTERISK AND ARE ITALICISED Updated Daily
Today's Dow Numbers Stock Change Last -------------------- T - 3/8 34.88 GM - 7/8 55.25 CHV - 1/8 69.75 MMM -1 84.63 Day Month Year FOOL-4 -0.98% -5.51% -4.29% DJIA -2.33% -4.28% 2.10% S&P 500 -2.17% -4.26% 2.21% NASDAQ -2.23% -6.67% -5.37% Rec'd # Security In At Now Change 1/2/97 153 Chevron 65.00 69.75 7.31% 1/2/97 120 3M 83.00 84.63 1.96% 1/2/97 179 Gen. Motor 55.75 55.25 -0.90% 1/2/97 479 AT&T 41.75 34.88 -16.47% Rec'd # Security In At Value Change 1/2/97 153 Chevron 9945.00 10671.75 $726.75 1/2/97 120 3M 9960.00 10155.00 $195.00 1/2/97 179 Gen. Motor 9979.25 9889.75 -$89.50 1/2/97 479 AT&T 19998.25 16705.13 -$3293.13 CASH $431.29 TOTAL $47852.92

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