UNCANNY...READ THE WHOLE POST.
To: Gary (15528 )
From: Puff Daddy
Saturday, Aug 1 1998 2:04AM ET
Reply # of 17589
To the guy who cared to post my previous responses on various threads: it's called
sarcasm...I suggest you learn it. I mock your people for you zombie like affection for
these stocks (particularly the DELL thread).
<<Interesting post. So, the market turns bad.... folks run for the doors and put their
money in...where...the mattress? Where's the big money going to go...more
importantly and more significantly where's the small money going to go - the mutual
funds and 401K? >>
First, go to Japan to learn about mattress money and what overspeculation can and will
do to an economy.
Anyway, the premise behind that statement is that there will be continual inflows of
money. That premise is flawed because it assumes consistent economic growth and
current employment levels to be maintained. Sorry dude. Ever heard of economic
cycles? It's a simple concept; what comes up must come down and we will be headed
for a slowdown at best.
<<That's why they're holding up in this market ... as well
as anyone can hope anyway.>>
Oh really? We're two weeks into a probable sustained bear market and you're
professing Cisco's "strength?" I bet you all thought Cisco was going to go up today.
Thursday was a classic bear trap and you all
got caught.
<<What's more there is a
signficant barrier to entry - >>
Yeah right! That's why Cisco's margins were being crimped last year. A couple of years
ago people like you claimed the growth rate of the networking industry could be
50%/annum -- that's what fueled the absurd stock levels of ASND, CSCC, COMS,
etc...well, guess what? That growth rate got cut to 30% and still remains there...and
guess what...as more players enter that market, individual growth rates WILL fall! It's
simple economics.
<<True market fluctuations will effect every stock, but CSCO, LU, ASND, and other
strong networkers are a great place for long term money. You can take that to the
bank.>>
VALUATION, VALUATION, VALUATION. I don't care how good the company
is...when inflows stop, valuations will be questioned.
A recession is coming that's what I'm trying to tell you. Read the economic indicators.
Unemployment=less inflows=bear market.
Cash will be king as the fallout is recognized. |
