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Strategies & Market Trends : Value Investing
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To: peter michaelson who wrote (5729)1/11/1999 11:30:00 PM
From: Terrapin   of 78745
 
Excellent point.

I've heard commentators say things like "90% of the market capitalization is in the ten largest stocks..." I'm exaggerating but their point is clear: the nation itself is not diversified.

As for AMZN, my wife and I talked about shorting it but this is what I decided. The downside risk (for one who shorts the stock) is wholly characterized by the irrationality of the uninformed, over-zealous Mob (I thank Ayn Rand for the term). They are wrong and I know it but their size and energy makes them formidable. This isn't true for a long position in a value stock where I've done some research, see potential and then wait for other reasonable people to see what I see. I just don't have the guts. I do wish luck to everybody that tries it.

In the meantime I watch as the January effect puts a little bump in the beaten up sectors I was watching for values. Perhaps that is best. I'll get back to raising cash.
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