1. Abandon the popular averages: Over the past six years, all of the major averages are grossly negative or just beginning to get back toward their best past levels. At the same time, the NYSE advance/decline line has been extremely positive. Additionally, the last time the averages were up, issue breadth was totally negative.

2. And the basics of investing, again, are what? Most investors confuse Quality with analyst expectations and think that Diversification means getting one of every product type that