Randy, I also have great respect for the Motley's. But, I have a slightly different take on the tech market, which I have posted before. In addition to substantial long term positions, I believe great short term profits can be made by trading into the volatility. The tech volatility comes from the fact that most investors are non-technical, and therefore most investors are ultimately suspicious of tech stocks. The market will ALWAYS OVERSELL in perceived bad times, because the non-techs want out. But, they will have to come back because the great tech stocks are far more profitable than most anything else (see MSFT gross margin +90%, INTEL manufacturing gross profit near 60%, CHKP net margin 40%, etc) Also, in many tech areas, branding is incredibly and there are many near natural monopolies. (If MSFT isn't a Buffett toll bridge, what is?).
So, the tech investor has a great opportunity, to amplify his earnings, by playing against these trends, especially in a non-taxable account - ie IRA. My natural long term outlook has actually prevented me from taking full advantage of this situation. With discipline, I am trying to overcome this. From last July I was Jul +75%, Oct -5%, Dec 31, +90%; I want to remove Oct and be +150% in Dec 31!!
Regards,
Tom |
