Dipy, > >>For the life of me I do not see how on earth anyone can feel insecure right now with the continuing boom in the economy...<<
Addi, if you studied history, you would know that they were saying the EXACT same thing in January 1973. The ensuing bear market took the averages down by 45%. Individual stock "darlings" lost as much as 75% to 90%.
Big difference, 1973 to today, though. Financial conditions were horrible then (or horrible was just around the corner). Money was extremely tight, e.g., I had to put down 30% to buy a house. My mortgage rate was about 14%. Unemployment was very high, and inflation was high teens, as I recall. How does that compare to today's conditions at all? I don't think any of that is around the corner.
Unfortunately, the first big tech to come out with earnings and guidance going forward was not so good (MOT, guidance). Any excuse will work these days to trash the techs. Question is, can the other tech leaders put it back together with good news: Sun tomorrow, IBM and Intel next Tuesday, Microsoft next Thursday.
Tony |
