There is little doubt that LU will fall, like the rest of the apples from the tree. What can possibly stop the bear-market steamroller now? THe market responds to every little scrap of bad news, froeign or domestic, with a decline and shows no response to good news.
Ominously, more stocks declined than advanced again last week. And there are now a record number of new lows. One by one the techs are falling with even the stallworts coming under pressure: all chipmakers, IBM, PC-retailers, PC-component makers, telecomm, wireless, aerospace, biotech....you name it. The S&P 500 still trades at a high P/E. And it is clear now that the "experts" and the "average joe" are sounding the retreat: mutual fund intakes are dropping fast, shifts from equity to bond funds are coming on strong.
I think everyone, myself included, want to get out while the sun yet shines, before the fruit dyeth on the vine. I made a nice profit. I missed the high. But it is not too late for me to get out while I still can. I think cash will be king for the forseeable future, especially with the threat of deflation and the credit-liquidity crunch which we will see due to heavy bank losses and high consumer debt.
I am therefore liquidating ALL of my holdings in LU. It's been a good run.
Happy investing.....Slick |
