I think you know the answer and its frustrating, depending on your
portfolio...Because your value hunting, bottom fishing and right now the
market aint rewarding that, at all. The russel 2k is at a 52 week low and if
you dont own GE, LU, MRK , PFE, etc. you arent participaing, stressing the
importance of allocation and diversification Right now, i'd be about 30%
large caps, 30% smaller/mid caps, 40%cash..and the 30% in large caps,
while most exposed to a harsh correctio, iss critical because it appears
the markets will continue to reward liquidity and brand name. It might
never change...these small caps and mid caps might fall right off the
horizon.. some might go bankrupt, some taken over at such valuations,
some taken back private by the companies, etc...if buyers dont want you,
regardless of earnings, you're going lower...keeping that in mind and the
fact that stocks go to zero, longer term, value oriented, bottom fishing has
outperformed large cap investing...not in the 1996 to 1998 period but over
the 1977 to 1998 period, it has outperformed.
Regards,
Steve
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When you see something is on sale for 50%, wouldn't you
salivate ...
How am I going to see it is now 75% off ...
Most of my dudes are down 50% from the May high ...
Really hard to take this kind of shit ... |
