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Technology Stocks : Egghead Computer (EGGS)

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To: James Strauss who wrote (373)3/11/1998 12:54:00 PM
From: Oeconomicus  Read Replies (2) of 8307
 
So, why not invest to take advantage of this madness while it lasts...

Because there is no way of knowing how long it will last. It's not even likely to be clear when it's over because there will be plenty of bounces on the way back down that fool people into thinking "it was just a correction - off to new highs from here". Buying something because everyone else has gone mad and you hope the madness will spread to this stock is not "investing". OTOH, the relative valuations may indicate that the downside risk here is probably less than 50% while on some others it may be much, much more.
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