Sam,
I think when you buy a stock, you have to look at least 3 years away for price appreciation. The last few years have been abnormal, in that returns come within a matter of weeks. Those returns are over.
Long term, I think the smaller companies have better earnings growth prospects. But you must be very selective, because your money will be tied up for years. Thus, it is safer, and perhaps wiser to go with Lucent, Intel, Microsoft, Cisco, et. al.
Smooth IS nice. That is why everyone owns Coca Cola, GE, Msft, etc. Soft and Cuddly is good, and most of our portfolios should be these guys.
Short term, I think the S&P 500 is finished, index funds are finished, and stock picking will pay off. I do expect to reap my rewards in this life, but not for a couple years. Patience!
My ONLY concern with SDLI is the lawsuit.
Growth stocks have fallen a lot over the last year. Now watch the big guys fall. Then the little guys will lead us up. Time frame: 1 to 2 years.
All the best to you, trust in yourself.wj |
