Well, Ed, I'm the wrong guy to defend G&K, since I am not religious about any strategy. It presents a nice model for selecting tech stocks, and does very well in certain market conditions. I'm not sure how well it will do in an uncertain or down market, but so far it has done no better, and a bit worse, than other models. The post that you originally responded to, I believe, was the one in which I proposed that small or mid caps may be a better vehicle in this market, though with larger volatility. Regardless of one's strategy, the market has taught me one lesson: Be flexible and avoid dogma. You can lose a lot of money by sticking to the wrong side of any strategy. OTOH, there is a case to be made for ltb&h, and I respect those who have that type of time horizon and really can play the long term uptrend in the market. Problem is, that trend may play out over a much longer time period than most investors are willing to wait, particularly investors in volatile techs or on the internet.
About exercising caution and the current market condition, well, you are preaching to the choir there. What options strategies do you think are best suitable for this market?
It's nice to have a level-headed exchange with you.
P.S. About
this is serious, it's about individual life savings, about people who had everything in calls, and lost all as the market collapsed....
We are in violent agreement here. That is why I made reference to the $50 call that became a 50 cent call. This is risky business. |
