"How low can it go" has become the operative question as the "Street of
Dreams" becomes characterized in the media as one paved with nightmares. Any
moment
now I expect to hear comparisons with crashes of the not so distant past. Is
it a new recession, higher oil prices, the upcoming election, hurricane
season, Olympic terrorism fears? For every 100 points the bar moves lower, the
more
fearful investors get and the more susceptible they are to the incredibly poor
advice that spews forth from Wall Street and from Investment Professionals in
general! Stuff like: Sell! Wait and see. Move to cash.

A cynic would explain it away as the general inability of humans to learn
from their mistakes, and I would have to go along with that as a reasonable
explanation (please don't be insulted, but don't take comfort in knowing that
you
are not alone, either). Most people don't appreciate this simple relationship:
for every seller, there is a buyer! That's right (light bulb should start to
flicker), and those buyers intend to make profits on the stuff that those
brilliant Mutual Fund managers are tossing out of their Growth Fund windows.

Two negative forces are at work in the market today. Institutional Money
Managers (and their leaders) don't want to look stupid by owning stocks that may
continue to go down. The media will interpret even semi positive news
negatively for pretty much the same, go with the flow, reasons. Part of this is
the
"in" or "out" mentality that most professionals carry with them throughout their
Mutual Funds only careers. The myth of market timing, and the total disdain
for profit taking are powerful forces as well. Is it possible that "investors",
like "crap shooters" don't really expect to succeed?

So here is some advice that you just won't hear on CNBC or read in "The
Journal", but it is advice that is based on one incredibly simple market fact:
there has never been a correction (particularly in NYSE, investment grade,
dividend payers) that has not succumbed to yet another rally! How's that light
bulb?

Get out there and PARTY! Go under the Limbo Bar and select those good names
that have been beaten down 20% or more, apply patience to the diversified
portfolio you've created, and remember to take your profits when they appear
some
(unpredictable) time in the future.

Is this easy or what?!

Steve Selengut
-----------------------------------------------
Author: "The Brainwashing of the American Investor: The Book that Wall Street
Does Not Want YOU to Read"
steve@...
800-245-0494


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