First off... I do not subscribe to the WSJ so I could not view your 6 examples you mentioned in your earlier post.
Now...
Over the years I have learned (finally), to argue less... you do not know me, obviously, so you have no idea the size of such statement -g-
All I can say is that I see the United States economic engine running very well, providing guidance to the rest of the world to the point that we now have many countries attempting to imitate, (openly), the system of free enterprise that some very astute entrepreneurs have come to master here.
For better or worse, it seems to me that the market senses such and the participants buy the stocks of those companies who are leaders because of their technology or whatever, that makes them be in a strong position.
From time to time yes, we do have these manias such as the "dot bomb" thing...
The valuation game is relative, yes it is good to know a "comparative standard" but I can not simply ignore the great majority of people buying the "good companies".
That is a fact. because that is the reason their stock goes up. (and here is one of the reason why I take profits from time to time, in turn reducing the exposure at times). am I infallible ? = No.
Whether the buying is based on flawed theories or not is a different question. My job is to diversify, minimize and manage the inherent risk that investing or speculating in the markets represent.
But I can not stop playing the game because someone is yelling "the sky is falling". I will stop playing the game when I have a piece of the sky in my hand. (yes, I do know the risk of that statement).
Is that foolish, or blind ? That depends. If I am capable of managing the risk, I do not think so.
I know I am taking a risk, but I am willing to do so, and I think I have, for now, found a way to be in a position to manage it. I am betting I can manage risk better than listening to the fear mongers telling me... that the sky is falling.
We shall see... nothing is ever 100%
p.s. to attempt to equate today's market to 1929 is almost childish... for starters, the international market is huge... and accessing it is becoming easier. There are more people working... saving and putting money in the stock market than ever before... this means that the companies are sound and have a bright future... the stock market may suffer, but I do believe that companies will continue to steam along to service the needs of millions.
and yet.... there is even MORE people around the globe that have not yet put any money in it, or consume what they could... from that point of view... there are absolutely no point of comparison.
And even if there is a gigantic break in the market... trading will continue, and there will be smaller swings... so.. there I will be, (probably with a reduced capital), trading on the long and on the short side...
By then, wireless will be a common thing... I will be serving soup at the mission, and in the breaks, hell, I will be buying and selling SUNW in the penny markets...
Whatever... Good luck to you, and above all, good trading ! |
