But do you really think this is a bear market? Maybe a severe correction, instead?
That's always a tough call. However, I think we have some ways to go. There is still quite a bit of complacency. We could see a Nifty Fifty type run-up in the big-name tech stocks. You know, like INTC, CSCO, MSFT, the kind of stocks that seem to be in everybody's portfolio. However, they are all enormously overvalued anyway and might eventually crumble, only a little later than the rest.
I see any rallies in this market as opportunities to sell rather than as an indication that the worst is over. As far as LSI, chances are that we might go up before earnings, but not go as far as the recent highs (75). We might top off at lower levels, like the low to mid 60's. That will be a tremendous "second-chance opportunity" to lighten up. Anybody who wants to sell but decides to wait for the previous highs or the all-time highs of 90, is quite likely to be disappointed. |
