Subject: IC940719: Funny - HUMAN NATURE AND STOCKS GREED/FEAR CHART

From: "Gray Zhu, 800-289-2498, 212-279-6700" <[email-masked]>
Date: Mon, 18 Jul 94 23:04:04 CDT

==================    IC940719: Investment Club  ======================

1. Funny: HUMAN NATURE AND STOCKS GREED/FEAR CHART ............. FPW
2. Correction about the JH Bank Fund ........................... Gray
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

	       HUMAN NATURE AND STOCKS GREED/FEAR CHART
	       ========================================

 The following is originally a chart shown on Financial Planning on
 Wall Street, July/August 1994 issue. I think it is funny, depicting a
 perfect BUY HIGH SELL LOW and SELL LOW BUY HIGH psychology. Because I
 cannot plot the chart here, I use numbers and a table here to emulate
 the funny chart: (- Gray Zhu)

 The numbers on the left are stock price, and the right is "someone"'s
 thinking. As time goes on:

 50 This growth stock only yields 2% but it should split. Working on a
    cure for cancer, Electronics, lasers, outer-space, etc.
 45 I'll sell on the next rally.
 47 No, I want to get out even.
 40 Too late to sell now, It yields 5%. (profit inversion).
 35 Why is it dropping? It yields 6%, Earnings are good. I'll be an investor.
 30 Broker-buy again. I'll average down on this bargin.
 25 What a surprise! Rotten earnings and a dividend cut.
 22 Can't sell now. Too big a loss.
 20 Why am I so unlucky?
 17 How much lower can it go?
 15 Oh
 12 it can't go any lower
 10 Broker! Sell my stock!
 22 Good, I've sold it. I don't care if it's up. I won't touch that dog again.
 15 See, it went back down. Knew it would. Glad I am out.
 22 So it's up. It'll re-test those lows. It's a dog.
 14 Oh, I get it, a trading range. What a hell, I'll buy it.
 22 It worked! Broker, sell my stock! (I made something back, anyway.)
 12 Yippee, it went back down. I'll buy it again and sell it at the top of 
    the range. What a trader I am!
 14 A gold mine, for sure!
 20 Broker, sell my stock! (I am even more this time-I'll just wait 'till 
    it goes back down and buy it once more. Trading stocks sure is fun.)
 22 Huh? It was supposed to go back down.
 24 What rotten earnings. It has to go down. I know what I'll do. 
    I'll sell short.
 30 I can't believe it is still up. If it drops and I break even, I'll cover.
 35 Darn my broker! Why didn't he warn me.
 40 How much higher can it go? I'm breeding to death here on the short end.
 42 Oh.
 43 It can't go higher
 45 Why am I so unlucky.
 47 look at those good earnings!
 50 Broker! buy. Cover, help!
=======================================================

2. Correction about the JH Bank Fund:

a) The close date is July 22, Friday.
b) The validity is based on the date on the stamp, i.e., you have to 
   mail out the form by July 22, it doesn't have to be received by
   JH on July 22.  John Hancock's phone number is: (800)-255-5291, 
   you can call and ask for the form.
==========================================================================

                           Disclaimers:

 a) Material on ICnet  is for general information only, and made available
    to  voluntary  subscribers  (subscription  is  free).    There  is  no
    guarantee of  accuracy in either text or numbers, so please read  with
    your own discretion.  Opinion expressed by any author is  his own, not
    necessarily  his  employer's.  Nobody on  the icnet-l or related (Hong
    Guang, Gray Zhu or their employers, or any other members, or ifcss.org
    which is the  ftp provider) except yourself assumes any responsibility
    for any consequences of using the material.

 b) You are free to forward and copy the material  for private use. If you
    do forward, it is mandatory to let it ALWAYS GO  WITH DISCLAIMER.  Use 
    of the material for commercial  purpose without written consent of the 
    author is prohibited.

 c) Any past  performance examples should not be  considered an indication
    of future results.

==========================================================================
    Any VIP related message should be addressed to: [email-masked]
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
                  ICnet - Investment Club on network
__________________________________________________________________________
  SUB/SIGNOFF to: [email-masked], with mailbody as:
                  SUB ICNET-L Firstname Lastname or: SIGNOFF ICNET-L
  Post mail to:   [email-masked]
  Anonymous ftp:  at ifcss.org, in direcctory: /org/icnet
  Gopher:         /org/icnet on ifcss.org, /ifcss/org/icnet on cnd.org
  Managers:       Guang Hong, [email-masked]
                  Gray Zhu, [email-masked] (800)-289-2498
__________________________________________________________________________
     ALL INVESTMENTS INVOLVE RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~