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No. of Recommendations: 12
>i'm not looking at just recent months but last year and early this 
>year. i'm sure i'm not comprehending the big picture, but all i see is 
>how much i'm losing.

Lets take a hypothethical case of a person investing $500/month in their 
401(k) over a two year period which begins with a bear market, then a 
recovery back to just short of the original price. NAV = the Net Asset 
Value of the mutual fund.

NAV  Purchase   Total Units  Value      Principal   Return      % Return
10   50.00      50.00        $500.00    $500        $0.00       0.00%
9.5  52.63      102.63       $975.00    $1,000      ($25.00)    -2.50%
9    55.56      158.19       $1,423.68	$1,500      ($76.32)    -5.09%
8.5  58.82      217.01       $1,844.59  $2,000      ($155.41)   -7.77%
8    62.50      279.51       $2,236.09  $2,500      ($263.91)   -10.56%
7.5  66.67      346.18       $2,596.33  $3,000      ($403.67)   -13.46%
7    71.43      417.61       $2,923.24  $3,500      ($576.76)   -16.48%
6.5  76.92      494.53       $3,214.44  $4,000      ($785.56)   -19.64%
6    83.33      577.86       $3,467.17  $4,500      ($1,032.83) -22.95%

At some point along here the foolish investor will panic and either sell 
out, or stop investing entirely. The FOOLish investor will hang in there.

6.25 80.00      657.86       $4,111.64  $5,000      ($888.36)   -17.77%
6.5  76.92      734.79       $4,776.11  $5,500      ($723.89)   -13.16%
6.75 74.07      808.86       $5,459.80  $6,000      ($540.20)   -9.00%
7    71.43      880.29       $6,162.02  $6,500      ($337.98)   -5.20%
7.25 68.97      949.25       $6,882.09  $7,000      ($117.91)   -1.68%
7.5  66.67      1,015.92     $7,619.40  $7,500      $119.40     1.59%

Amazing, the FOOL is already making a profit, even though the market is still down 25%!

7.75 64.52      1,080.44     $8,373.38  $8,000      $373.38     4.67%
8    62.50      1,142.94     $9,143.49  $8,500      $643.49     7.57%
8.25 60.61      1,203.54     $9,929.22  $9,000      $929.22     10.32%
8.5  58.82      1,262.37     $10,730.11 $9,500      $1,230.11   12.95%
8.75 57.14      1,319.51     $11,545.70 $10,000     $1,545.70   15.46%
9    55.56      1,375.06     $12,375.58 $10,500     $1,875.58   17.86%
9.25 54.05      1,429.12     $13,219.35 $11,000     $2,219.35   20.18%
9.5  52.63      1,481.75     $14,076.62 $11,500     $2,576.62   22.41%
9.75 51.28      1,533.03     $14,947.06 $12,000     $2,947.06   24.56%

Cool, a 25% return over two years in a market which was actually down! 
Why? The FOOLish investor bought a bunch of stock at the bottom, when 
the foolish investor was selling out.

The irony here is that bear markets are a friend to the investor who 
practices Dollar-Cost-Averaging.

Cheers,
madmikeyd
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