The Daily Dow
Friday, August 1, 1997
by Robert Sheard

HILTON HEAD, SC. (August 01, 1997) -- Of all the journey metaphors I could choose for investing, I'm going to take the mundane automobile cruise down a long boulevard.

On such a journey of several miles (think decades), you're going to experience just about every type of traffic pattern (market) you can imagine: easy driving during stretches where there's no traffic, bumper-to-bumper frustration, red lights, green lights, the occasional pot-hole, and every now and again, an accident.

Right now I'd say we're cruising pretty nicely, but up ahead there's a very stale green light. It's been green long enough that it could well turn on us before we get through the intersection. There's no way of knowing, though, so what do you do? You keep driving, of course, but watch the light carefully.

If you get through the intersection without it turning red, so much the better; you'll get to your destination that much more quickly. If it does turn red, though, there's nothing you can do about it, so you stop and wait for clear sailing again. You don't change your destination, you don't make a big detour, and you don't suddenly get out and jump in someone else's car. You let traffic run its course and then continue.

Nothing should be different for your trip as an investor. When the market goes your way, you make good time towards your destination (retirement, whatever). When traffic in the market goes against you, you're slowed up somewhat but you keep traveling.

So if you're worried about the market's stale green light right now, don't pull out road maps looking for another route. Keep on course and hope you make it through the intersection before it turns red, but if you get caught at this intersection, recognize it for what it is, a short-term obstacle that you'll overcome after a slight delay. This light is just one intersection in a long boulevard. Keep your eye on the final destination and you'll keep each short-term event in perspective.

(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. ________________________________

Stock  Change   Last
--------------------
T    +   1/4   37.13
GM   +1  7/8   63.88
CHV  -   1/8   78.88
MMM  -   1/2   94.25

           Day   Month    Year
        FOOL-4   +0.71%   4.46%   6.72%
        DJIA     -0.35%   6.68%  27.07%
        S&P 500  -0.75%   7.00%  27.86%
        NASDAQ   +0.03%  10.56%  23.49%

    Rec'd   #  Security     In At       Now    Change
   1/2/97  153 Chevron       65.00     78.88    21.35%
   1/2/97  179 Gen. Motor    55.75     63.88    14.57%
   1/2/97  120 3M            83.00     94.25    13.55%
   1/2/97  479 AT&T          41.75     37.13   -11.08%


    Rec'd   #  Security     In At     Value    Change
   1/2/97  153 Chevron     9945.00  12067.88  $2122.88
   1/2/97  179 Gen. Motor  9979.25  11433.63  $1454.38
   1/2/97  120 3M          9960.00  11310.00  $1350.00
   1/2/97  479 AT&T       19998.25  17782.88 -$2215.38


                             CASH    $767.60
                            TOTAL  $53361.98