Wish we had a "cash" index. The 30-yr still moves a smidge with a negative correlation to equities..but not as significantly as it once did I guess.
I find the smidge too hard to gauge, and thats why I dropped it
The gap can be narrowed but never the two shall meet
Very true, but with the gap so huge in the past, analysts couldn't even "aspire" to equality, with lesser p/e's in the teck stocks and the "I told you old school was stable" attitude, they'll try to massage it up, that, you can count on.
But how do the fund managers feel about recording a 0% return for the year?
Those that were in on the correction and did not believe in "total capitulation" will do well, those that are not in, are trying to buy the dips, those that are not in, are in trouble.
The more the funds buy the dips the more the belief will come back to the market, that buying the dips "pays". As soon as that approach prevails, the market will stabilize and then the slow migration to higher numbers will occur. That doesn't mean all will return to their lofty heights, not at all, in fact many will stay where they are. Many however will surpass their previous highs as we reach September.
The guess applied
To apply this theory, I am buying COR...why? Because I think the Imprise/Borland screw up will be Cowplands undoing. He will step down as CEO before August 1 and they will catapult some high flyer in to take his place. This coupled with MSFT's "perceived demise" will result in upward mommentum.
There are many others out there that will move along with these stocks! No-one PM me please I don't have alist!
the Chief |
