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To all on this thread, I purchased 50 Nortel Nov 65 calls today for .85. I think that the markets will rebound in November as they traditionally do and I feel Nortel will be one of the beneficiaries. Putting aside Bay, Asia, Latin America, interest rates, Clinton and hedge funds aside, the fact remains that the only place for decent returns continues to be the equity markets. With the U.S. thirty year bond yield dropping below 5% today, we will soon see fund managers and portfolio strategists rebalancing their model portfolios to compensate for the unaccebtable bond yields currently available. The stocks that will benefit will be the large cap, liquid, growth stocks such as Nortel, Lucent, and Cisco among many others. While earnings will slow, this is a temporary problem and I for one feel that investors will soon rush back into the equity markets and stocks like Nortel for their relative safety and long term groth prospects. |
