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Subject:  Re: Asset Allocation Date:  8/1/2005  7:26 PM
Author:  jrr7 Number:  47122 of 88543

When the market is up, their funds are doing well, money floods in, and they must buy. When the market drops, disgruntled investors want their money back, even with a loss, and they must sell.

But this churn only hurts those who are just chasing returns. It has no effect on the fund's long-term performance or on buy-and-holders, and almost no effect on people doing dollar cost averaging.
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