I think the market's nuts. Here we are in the early days of the biggest peacetime capital and services buildout since the industrial revolution and investors are scared to death! It's silly. I think the talent pool at mutual funds is stretched too thin, and they're all moving like a school of fish.
Adding to the instability are the marketmakers who are hiding under their desks. I can't blame them, though. Their capital pales.
I hope this all ends tomorrow morning, but I have my doubts. We're getting into tax-selling season. It's too easy to switch positions, and money leaves the market in spreads and fees, etc, when that happens.
The dot-com (look at the new yearly low in the DOT today) shakeout in a vicious cycle so I don't know how those dynamics will play out, and it has repercussions into the healthiest companies. I'm keeping my investments in the dot-com leaders I've liked...Yahoo, DoubleClick, eBay, Amazon, etc...because they are still very young and have established their competitive edge. Yahoo sells at a PEG of 1 on next years earnings. That's insanely cheap, and we haven't even entered the Internet's broadband phase yet!
Today's B2B selloff was literally hysterical.
I'm just going to let it play out and ride the volatility. I feel we're nearing the of this correction in terms of time, and I think this phase will see a "V" bottom. I don't have a clue what the low print will be, and it doesn't matter to people who buy the best young companies and think like shareholders instead of traders. |
