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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: MrGreenJeans who wrote (6503)7/2/1999 9:10:00 PM
From: Greg Jung  Read Replies (1) of 15132
 
Mr. GreanJeans. You forgot an additional sign of a speculative peak:

investors who believe they can time the market and get out at the top

Characterising the market by indexes, it will certainly correct hard
and this will be taken by a minority of stocks (where the majority of new money has gone). The small-cap value, now getting phrased as "GARP" may also get hammered but as a group they bottomed in October and again in March/Feb to similar level (no index, just a lot of the stocks I've been watching). As the internuts got creamed Techs That Actually Earn Money picked up of the spring bottom and they are struggling to make a second leg. Meanwhile we picked up some real froth along the lines of the IPOs - not all internuts - so I think we are in for a few more months of tall tales as those invested in the "wish and a prayer" sectors try to justify insane market caps.

I suppose if you're riding something like the Qs or SPY it may be ok to try to ride the wave to the "top" and let go at just the right time... very ambitious. You'd be better off finding a mix of equities that you can live with - at least under the forseeable circumstances.
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