Hi Ann: INTC & MSFT Continued. Sorry but I got cut off, here's the rest. I am sure by now everyone has read Franks opening remarks when logging on, where he expounds "The doctrine of this tread" which is to "buy and hold" and has until now, been "the winning strategy" during this unprecedented bull market of our generation. I believe the mantra of this thread should also be and for the most part is to buy dips, buy into weakness and gloom.
This is particularly applicable to the favored (adored) stocks that are most often featured here, because these are stocks that you can buy on dips with the confidence and knowledge that their underlying fundamentals are strong and therefore when short term negative influences eventually evaporate or disappear, buyers will step back in and take advantage of these temporarily discounted prices, usually quite aggressively.
I do believe that one should never be emotionally affected by a must have or buy at any price mentality as this can often result in a very expensive lesson in real time stock market experience. Zeroing in on the stocks you want to buy and waiting for the market to meet the price that YOU are willing based on your own ideas, valuations and expectations is a far superior formula for achieving both short and long term stock market success.
Look, don't get me wrong, I am just about the biggest bull in the World on Microsoft and if it wasn't for Asia, Iraq and other uncertanties, I might just say buy at any price. You may remember some of my lengthy posts about how high and why this stock may eventually go and how rich Bill Gates may eventually become, (like the first Centi-Billionaire in history). Yet even he does not know whether he will make it this year, or before the year 2000 or 2010 if ever. But this is not the same peaceful stable World and insatiable appetite for stocks bull mania that existed between May and July of 1997.
The reality is that we are facing potential imminent military action with Iraq and this is by no means a fait accompi. Nothing in war is ever certain and things could go badly wrong or escalate and despite the fact that this does not seem to be influencing the market today, that could change at any time. Personally, I do not like to go into any kind of potential conflict too long the market, until there is clear evidence that the worst is over, which usually the market signals first.
The stock market can be a dangerous place but can also be a highly rewarding. Just ask the holders of WDC or Dell for a contrast in viewpoints.
rgds
Wiz |
