EMC and SKX: Watching these two very closely. As far as the economy goes, we have to allow the cycle to run its course, and there aren't many that believe this is an extended recessionary period. If we have to wallow for the next year, so be it. There was so much wealth created over the past 10 years, everyone expected it to just continue. The spending had to stop ..... the question is, will growth return, and there is NO question that it will; it is the cycle. We have good years, and bad years, the only question is which one outlasts the other, and the economy looks no worse than an inflated stock that had a nice run and has now pulled back.
To not be taking advantage of some of these prices now, in my estimation, is a major major mistake that will be proven over the next 5 years. If you are waiting for your favorite issues to fall into the old valuation theory of a 15 P/E, you may be waiting for a very long time. You must be ready to pay a premium for the primary stocks, but how much of a premium is up to you. Failure to invest now because of 30 P/E on a premium stock could be a bad a very bad long term decision.
tJ |
