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TO ALL: Before you go too bearish, consider this, that although many of the high-fliers are now fully valued, there are still many relative bargains left: beaten-down "dogs" which are really great companies, cyclicals which have done nothing, and even tech giants like T and IBM which still have low PE's and should be trading a lot higher. Therefore, even if there's a pull-back I think it will spark new bargain buying. Sure the market will be nervous between now and Jan. 1st but there is still a lot of money to be made on the upside if you pick undervalued gems before the big boys do. Also everyone wants to be fully invested in january, right? -- I just made $45,000 playing undervalued beaten-down gems mostly, stocks which had been pummeled. And there are even some who think SUNW at 112 is a good buy. And maybe it is. The market seems to need a little breather but it took one the other day and look what happened. Buying began again and I made 4% that day because every one of my dogs went up as the high-fliers were retracing. Look at stocks like UIS, ANF, IBM, LOR, BSX, CPQ, WFMI, COMS and compare where they are to their 52 week highs. Not even remotely close yet. Still down 50% in some cases. These are all stocks I own of course because that's why I pick them. They are winners and future leaders but they still haven't been un-punished yet. And why were they punished in the first place? For not very good reasons (except CPQ maybe). Anyway, I might hedge by buying a gold stock or a few bonds and will always keep some cash ready for special bargains (like ANF or UIS when they dropped 10 points in one day) but all of the above stocks I plan to hang onto and expect to make at least 20% more from them short-term. Just my two cents. Good luck everyone. |
