Randy thanks for your post.
The implication (as I inferred it) was that your friends and relatives would take some action based upon the market being "over-extended". Otherwise, what's the point of being concerned about the aggregate investment environment?
Your inference was not necessarily correct. Again, as I stated in my post, certainly someone can adhere to a long term hold strategy of investing and be concerned that the market is over-extended - do you disagree? Aren't you ever concerned about risk? Or is your faith in the market so blind that you could easily never read the news or look at the indexes again?
Open-minded research just means being willing to change your mind,
I've never heard the term "open-minded research" before. But one could infer from your message that you used it to suggest that one, perhaps, would not be researching with an open mind if they were to come to the conclusion that some of the internet and b2b stocks are not worth their current market caps. If I say my research leads me to conclude that YHOO is over-valued, does that mean my research is not "open-minded"? Research is research. Some research is objective and solid, other research is subjective and flawed. Obviously, good research is pursued with an "open-mind". Your use of the term sounds too much like "new era bubblespeak" as I like to call it - as though "open-minded research" is a new type of research to be applied to new era internet and b2b companies. Perhaps, this is what you meant - is it?
As for the values that YHOO and AMZN should be selling at - well, I could write for hours on this topic. But I am a firm believer in the economic adage that a thing is worth the price that someone is willing to pay for it. Investors are willing to pay $253.00 a share for YHOO and $86.56 a share for AMZN - so these prices are what these stocks are worth. If you were to ask me what I would be willing to pay for these stocks - I suppose if YHOO dropped to $50, I might consider looking at it. AMZN, however, I'm not sure there is a price I would pay - you see, I don't really believe in the company, and as such it would be difficult for me to buy their stock.
Thanks,
-Eric |
