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Strategies & Market Trends : YEEHAW CANDIDATES

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To: Ditchdigger who wrote (776)12/28/2002 11:45:57 AM
From: Sergio H  Read Replies (2) of 23958
 
Good morning Ditch.

I can't make a case for the Naz, the S & P 500 or the DOW to go up before further decline, but I am bullish on small caps for the time being, DFIB included.

The first half of the year promises to be a stock picker's market rather than sector rotation unless you invest in natural gas, oil, gold and other natural resources. The military build up in the mid-east is going to continue to pressure the dollar and move commodities higher. I am shifting all of my money into natural resource and special situation small caps in defense, biotech sectors as well as mundane service providers.

I agree with you on the housing market. Rates will eventually rise giving the current real estate valuations a diet as well as economic turbulance, but I think that the pain in R.E. will be offset by the improved balance sheets in stocks paving the way to a stock rally in the second half of the year. A rally led by small caps such as your little qt.

Hope you enjoyed the holiday Ditch. Best wishes for your dad on his NY's date.
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