Rande,
If I read your post right, it is my patriotic duty not to short stocks. Bollocks. It is my duty to teach wet behind the ear analysts that a p/e of 100 is not normal. Or that borrowing billions to make millions is not a formula for success. Stocks are going down because they are overvalued, and they got that way after everyone figured they'd better be in stocks or else. Look at some of the good money managers like Buffet and Weitz, they are not suffering because they never got involved in this craziness.
Also, I don't buy your theory that the tail wags the dog, that the economy is dependant on the stock market. I don't know the statistics, but I guarantee you that in the 20s only a small % of people held stocks. Do you mean to tell me that the only thing we have to do to save the economy is get everyone to buy stocks? You are describing a pyramid scheme I will concur that the falling market will exacerbate the problem, but it did not cause it. Economies are cyclical, always have been.
Like I have said before, the stocks I'm shorting are overvalued by any historical measure, and anyone who buys stocks with forward p/e's over 70 deserves to lose their money.
Having said that, I do own KDE, the p/e is only 12 and I expect major growth in profits with the coming yu-gi-oh and cubix craze. So there are good buys out there, they are just not in technology. Apparently, not everyone has lost their technology tunnel vision, but the market will see that eventually they do. |
