Your caution and pessimism and scepticism, about CSCO and the other hi-PE hi-techs, is exactly what my attitude was......12 months ago. I sold my CSCO in 1999, when it hit a triple-digit PE. The stock just kept on climbing, but I refused to buy it back, saying, "no stock is worth that much". For a long while, that looked like a dumb move (as many people on the SI threads told me). Now that the stock is back to where it was in June 1999, and the analysts are all saying, "sell", now I'm no longer cautious.
Anyone who has read my posts for a while knows I don't follow the crowd.
And I still have that limit order at 40 for AMAT pending, so I may get to ride both of them up. Tax cuts (retroactive!) and the Fed pouring liquidity into the market, and cutting interest rates precipitously........in retrospect, it's going to be obvious that this is the time to load up on stocks. |
