Another comment I heard today also surprised me a bit, in that it made me think....
If you think mutual fund managers (the smart money?) are holding on to their stock winners, maybe you should think again. They have to sell their winners to balance out their losers....uh oh.
Other thoughts and observations:
For one thing....as soon as techs recover, all the money that has gone into "safe havens" (energy/oil, Walgreen's drug stores, pharmas, etc.) will drain out of safe havens and back into techs. If invested in safe havens, beware.
I want some GE on the cheap really bad. Afraid to buy.
Saw a news item the other day which said Maytag reported lower profits due to slowing sales. We already know Best Buy dumped all of its appliance sales, but this wasn't bad for GE, because Home Depot picked up appliance sales and is promoting GE appliances. However, you saw what recently happened to Home Depot stock-----down 30 percent in one day on a profit warning.
What if GE reports a lousy quarter next time due to slowing consumer demand for appliances? (and yes, I know GE does more than sell appliances, but you know how the market over-reacts to little items of bad news).
This is one reason I'm lengthening my outlook for recovery in the market to many months, not a week or two. I'm keeping my net out for a few select stocks IF they meet my very low price targets.....other than that, I am heavily invested in fixed-income investments and sleeping (a little) better at night. |
