Eugene, yes it's hard to believe that there won't be at least a 5% S&P pullback sometime before now and June, which translates to a 10% pullback for NASD. But there are so many positives going on! Crude oil prices, adjusted for inflation are the lowest EVER. Ever!
I was just reading Andrew Tobias' 'The Only Investment Guide You'll Ever Need', the chapter covering the 1973 'crash' of the nifty fifty. These stocks were selling at PEs of 60 or more - but, inflation was increasing, national debt soaring, high unemployment, rising interest rates, rising gas prices, price freeze, national unrest from Viet Nam, Watergate. Except for Monica Gate, all these factors are going the other way right now.
I have lowered my margin sigificantly, and raised a little cash. Of the positions you mention, I think CPQ is most likely to be realized. I've been thinking that with a good pullback, it could even go to $18. Then it will be time to jump in w/ both feet.
Regards,
Tom
p.s. I picked up 100 sh SAPHY.
p.p.s. Someday, Buffett's gonna have to buy some MSFT! Ted Williams sacrificed 15-20 pts on his lifetime average because he refused to ever punch the ball to left field, after the Indians installed the Willimas shift and everybody else copied it. He felt it was beneith him. |
