The market's Thursday weakness continued into today, accompanied by the usual talk after two down-days in a row. Analysts and fund managers, always desperately trying to be on the right side of any market prediction, came up with their usual unimpressive stuff.

We heard how the Fed might raise rates in May, as they wouldn't dare do so at their following meeting in the summer, as Congress will be home campaigning for the November elections. It was pointed out that even though the latest jobless numbers showed a slight increase, a greater increase was expected. We're told that the Asian effect has yet to make its full impact upon us, and finally we hear plenty about second quarter earnings being possibly weaker than the first quarter just reported, even though they should be stronger than the second quarter last year.

When you hear this kind of talk, naturally you try to figure out what this mean to your strategy. There is only one strategy that makes sense after two days in a different direction, when the averages have made only moderate moves as happened the last two days. You continue to do as you have been doing. If you have been a buyer, don't stop. If you have been a seller, don't stop. And if you have been a gradual accumulator, you of all people should never stop - especially if you have been investing on a regular basis.

Only greenhorns try to make a projection out of a few events. Monday could be down and you would hear more of the same. And then the market could be up Tuesday and Wednesday, and the pundits would all be singing a happy tune again! Don't pay too much attention to the markets' daily chatter or you will be prodded into making wrong moves. Hopefully we'll be able to alert you when we should all run for our fox-holes, and when that day comes, you can be sure it will take more than two consecutive modest declines for us to sound the alarm. Until then, make hay while the sun shines. Make all the money you can, in this greatest Bull market of all time. Stay tuned.

The Market Pro - April 24, 1998