Rande Is: Excellent post. One thing I have noticed is that when tech stocks sell off on a day like this, they are still above their prices in December and early January. If short, higher lows. I think the economy is very slowly recovering and with NASDAQ at 2400 began buying partial positions in several tech stocks.
I was not very bold and focused on stocks with very reasonable PEG's and franchise stocks in the best sectors. I did not buy 2nd or 3rd tier stocks and the small/mid cap stocks I want are above the levels at which I'd like to buy them. FWIW, I took positions in: TXN, ORCL, AMCC, JDSU, GX, PWER, and the QQQ's. If stocks go lower, I will NOT sell this time; rather, I will dollar-cost-average as I begin to complete the tech holdings I want. I will not overweight tech as I mistakenly did last year. However, it is foolish to completely ignore the bargains and reasonably valued stocks in the sector. TXN and ORCL with PEG's at or near 1.0 is far more reasonable than valuations in many other non-tech sectors. |
