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Subject:  Re: Free Advice Date:  10/5/1998  9:44 PM
Author:  hotfoot Number:  91 of 21101

<<Like many other people who are nearing or entering the retirement phase of my life, I have been subjected to the bloodbath taking place in the stock market, like all the rest of the small investors. I am at this moment, down 10.8% in portfolio value from my initial rollover>>

Blacknblue,
Hang in there!
I did about the same thing. Retired mid 1997, rolled a 401K over and got into the market last June - July 98 with some cash from a property sale.
The roll over was not effective until late Sept which delayed some profits (which are in the tank for now).

I read up on the Dow Approach and carefully invested the cash just as the market began its drop. It had dropped about 8% when I bought..

So much for careful planning. In my situation, I think I was going about it mechanically and not paying attention to where the market was almost sure to go -- down, based on conditions.
I thought about liquidating the cash, then buy back in later but, got hammered when I asked if that made sense on another board. No one advised "sell."

As I gain experience now, it begins to look better. One or two of the stocks I picked is at or near my purchase price. I think the others will recover in a reasonable time and that is how the investment plan is designed to perform.
I am leaving my IRA roll over to an advisor for now. It is broadly allocated, etc, etc, and I am not ready to fool with it. Right now we are living on SS and income from rentals plus a small pension from one of the companies I worked for.
H.



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