Ken. I have to say I like this market a lot better than I did a couple of months ago. It occurred to me recently that a lot of traders who are in their thirties or so haven't seen what a bear market can do. They haven't been whipsawed, had their margins called, or watched their aggressive buys cut to ribbons in days. While the recent decline has probably hurt a few people temporarily, it has probably helped a lot more people in the long run--particularly those who begin to emphasize investing over trading. I have long speculated that if you give five reasonably aware investors five years in five or so stocks or funds, three will make GOOD money, one will beat break even, and one unlucky soul may lose a little. Let the same five day trade and one may make a fortune, two will be on either side of break even, and two will be looking for night jobs.
I've been impatiently waiting to get back into the market. So today (probably a little imprudently) I bought CSCO and SUNW. I don't believe these two are necessarily the best values out there, but I believe they will be among the first and strongest to benefit when the market does go back up. I'm hanging on to some cash because I would really like to catch JDSU and AMAT in the sixties, AMCC in the fifties and EMC around ninety. If the market refuses to help, I'll try to catch them early on the way back up.
I'm curious to know what you and Sergio think about where the market might go from here. I'm hoping (and kinda guessing) there may be 12 to 15 percent left on the downside. That could be followed by relatively volatile fits and starts for up to a year setting the stage for a humongous rally when it appears inflation is thoroughly checked again. It'll be fun finding out. I just hope it isn't costly.
By the way IFCI was a helluva buy in the threes, and may be a good buy now.
Best wishes friend.
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