Hi Tom, Good to hear from you again. Market has been going
bonkers lately. Fund managers playing the momentum game and
performance catch-up. With mid-year review coming up in
only 3-4 weeks, many managers are underperforming either
because they were hedged, or were too conservative and
had too much cash, and/or avoided tech sector, and now
have to play catch-up, and the fastest way to do that is
by buying high-beta momentum stocks with high relative
strength. Only problem there is that when the momentum
stops, stock prices will have a long way to fall.
I was amazed at the run-up on Friday, that people would
continue to buy tech stocks at their present valuations,
or perhaps better to say, irrespecitve of valuation.
As overvalued, and overbought as the market is presently,
I'm not sure it doesn't get even more overvalued before
there's a serious correction. But chasing that is
tantamount to playing the greater fool game...as in the
famous word's of Clint Eastwood, "how lucky do you feel
today?" If you're wrong, the repercussions could be pretty
severe.
Good luck. Peter. |
