The Daily Dow
Friday, August 15, 1997
by Robert Sheard

ALEXANDRIA, VA (August 15, 1997) -- What a day. As if by fate, I hit the road for a trip from Lexington to Fool Global Headquarters this morning and left well before the market opened. And between Capital Beltway traffic and a screwed-up hotel reservation, I didn't arrive until just a few moments ago (late evening).

Walking into headquarters casually and not-so-stylishly late this evening, I asked facetiously, "So, did the market even open today?" Ba-boom!

Even though today's 250-point drop is the worst single-day performance since I began writing for the Fool, it didn't really faze anyone here in the office. And you know, it shouldn't. Of course it hurts to watch your portfolio shed 2% or 3% in a day, but for those of us in it for the long haul, this is hardly earth-shattering news. In fact, I'm more concerned tonight with finding a way out of here come the weekend without getting stuck in another four-lane parking lot than I am with a 2% drop in the Foolish Four.

Face it, Fools. We've had a comfy ride for quite some time. If we hit some turbulence now, who among can say it's not really to be expected? Now, however, is exactly the time NOT to do anything Wise, like panicking, market timing, hedging with options. Ride it out. Sooner or later, even the traffic on the Beltway moves again. But if today proves nothing else, it confirms the Sheard Effect. Almost invariably when I leave town, the market swoons. Five for six in the last three years, a statistic almost as relevant as the Super Bowl Effect and the various astrology factors. Yipes -- have a Foolish weekend and try to ignore whatever happens on Monday. Get in the car, drive for ten or twelve hours; it's a great way to remain unemotional in the market.

(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. ________________________________


1997 Foolish Four Model
Stock  Change   Last
--------------------
T    +   1/8   39.75
GM   ---       61.00
CHV  -   7/16  78.56
MMM  +   7/8   94.75

           Day   Month    Year
        FOOL-4   -2.15%   0.16%   6.08%
        DJIA     -3.11%  -6.42%  19.33%
        S&P 500  -2.59%  -5.61%  21.61%
        NASDAQ   -1.55%  -1.99%  20.99%

     Rec'd   #  Security     In At       Now    Change
   1/2/97  153 Chevron       65.00     77.19    18.75%
   1/2/97  120 3M            83.00     91.50    10.24%
   1/2/97  179 Gen. Motor    55.75     59.69     7.06%
   1/2/97  479 AT&T          41.75     39.06    -6.44%


     Rec'd   #  Security     In At     Value    Change
   1/2/97  153 Chevron     9945.00  11809.69  $1864.69
   1/2/97  120 3M          9960.00  10980.00  $1020.00
   1/2/97  179 Gen. Motor  9979.25  10684.06   $704.81
   1/2/97  479 AT&T       19998.25  18710.94 -$1287.31


                             CASH    $857.10
                            TOTAL  $53041.79