What do I think going into the end of the year?
This market both enthralls and terrifies me. Looking at moves like the ones that HLIT, PHCM, SNDK, EMLX, QLGC, BRCD, or BRCM have made (just naming a few, and not even mentioning the better known I-nut stocks), looking at the valuations on these things, just makes me shake my head, involuntarily gaping in a kind of stupor. And I find myself holding SNDK (the one I know best of the above names), justifying its price as not "really "expensive by reference to its enormous markets which are finally beginning to be visible and to explode, and referring in my little brain to the likelihood of a doubling or more of revenues over the next couple of years.
So the risk is high in these high growth stocks, what happens when one of the legs that you were depending on gets kicked out? See Rambus in the last couple of days. But the cheap stocks don't seem to move, or just move up a few dollars, then down the same few dollars. So it's boring and you may as well be in MMFs, which is where I have a lot of money right now, even though I'm itching to buy more stuff but my risk tolerance is shot, I just can't bring myself to buy some of these things cause I look RMBS, and think "There but for the Grace of...."
So what do I think? I'm pretty schizoid, enthralled and terrified by this market. I'm trying to wait for bargains. But then I went and bought a few hundred more shares of a purely speculative play this morning, Sonosight, which may become a home run and may become a strikeout, but boredom gets the best of me sometimes, and I think, geez, if xyz can go to the moon, so can SONO, and I don't want to miss that trip, so....
And so it goes....
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