THE two great teachers on stocks were Charles Dow and Benjamin Graham. Their methods differed greatly but they agreed on one point and that is stock trading is a search for value. At some price every stock is a value and should be bought and at some otherprice every stock is over-valued and should be sold. To take one major indicator from each, Dow said that any stock paying six per cent dividend yield or above was likely a bargain and probably should be bought. Conversely every stock paying less than four per cent dividend yield percentage was overvalued and probably should be sold. Graham said any stock priced at much less than book value was a bargain and likely should be bought. There you have the two most important rules and you can be your own reliable financial adviser. It is important that Hong Kong people observe New York and London so they can gain perspective on world markets. Right now the US market, except for gold stocks, is perhaps the world's weakest, living on borrowed time and the mutual fund mania. People believe the diversification of mutual funds will prevent loss. However, if the mass of people in mutual funds want to withdraw, the funds will have to sell driving the market down like a run on a bank. The US market is still powerfully bullish but every trend ends sometime.