ild, I think we are still in the "big is good" part of the bear market, similar to 1972-1974. The theory being that Hewlett's eps stink the house out and they lied about their prospects last quarter, but at least they won't go belly up. I doubt if it will last as long as the 70s Nifty Fifty fiasco this time. Information is flowing much faster.
There may be some new money from 401Ks, IRAs, bonuses, etc. flowing into funds. The high flying funds may be prone to send good money after bad in the hope that they can stick a thumb in the dyke when the water is already up to their necks. Again, it won't last long. And some of the that new money will go into money funds, probably a much larger % than last year.
Intel not only has a lousy operating environment, but its speculative sector hedge fund doesn't look so hot this time around. Still, they bought a lot of those cos. very cheaply, so there still may be capital gains available if they are willing to sacrifice the future to make the quarter. |
