Something has gone wrong with the market. It seems that we have lost the long term investor.
This is not the first time techs have been volatile short term, but long term they do come back as investors see the growth is there. I bet this truely grueling bear market is no exception.
Some examples from 1990:
In 1990 oil was high and we were on the verge of a recession.
Csco went from split adjusted price of .1042 to .06772
Dell went from split adjusted price of .1465 to .08594
Msft went from split adjusted price of 2.262 to 1.422
Very true that valuations are higher now and historical performance is not an indicator of future performance, but I imagine that those who bought at the highs in 1990 (and every year since in any true growth company) were questioning whether the companies could ever see new highs again. The percentages they lost were nothing to sneeze at, although today I bet we all wish we had even bought the highs.
Now we're faced with lots of FUD, chat rooms, fund managers who don't know what they own, margin players, upgrades one day and downgrades a few days later, mo mo's etc. No wonder the volatility is ridiculous.
Who should I believe? Short term change on a dime lemming fast money Cramer or do I believe David Rickey and Co.?
biz.yahoo.com
Cnbc interview with David Rickey seems to be gone, maybe as fast as the belief that he was right about his company's future.
So much damage has been done psychologically and technically to the market, I wonder if it can make a significant sustainable rally for a while as those who don't truely understand what they own try to sell out on rallies.
I've given up in trying to make sense why yahoo is now worth 50% more than sdli, why amazon is worth 33% more than merq, why corv is worth as much as sdli. Certainly none are cheap, but it seems the market is all out of whack.
Not to pick on you, but I see this all over the chat boards as typical and it saddens me how quickly our minds and hearts can be changed:
Message 14659605
Absolutely agree. A total straight-shooter with a clear plan for and vision of the future. His comments about the insanity of the WS reaction couldn't be more spot on, IMHO. For all of our sakes, I'd suggest that Mr. Rickey move over to the big board ASAP. He's just got too much class to see his investors being pushed around by a rapacious momo crowd on the NAZ. Heck, if it's good enough for the WWF, why not AMCC? And judging by Mr. Rickey's demeanor on CNBC a few moments ago, I'm sure he could hold his own in the WWF as well. :)
And now only two trading days later:
"The only reason I'm still in the game is that there was a real good possibility that we just saw a professional gap and that the fund managers now have a great entry point for the next relief rally".
My love for investing is leaving. It's being killed off as surely as if I were in a smoke filled casino.
Please someone come out and say they bought part of a company as an investment and believe in their long term (several year) future.
TA |
