Sonki
I appreciated your reasons for the ML post. But remember -THEY'RE IDIOTS!!--Soon the foreign exposure will cripple their stock even more.
My feelings on diversification are quite simple. Tech investing alone would be a disaster for 1998. I felt electric utilities, oil stocks, and reits were a decent bet this year if for no other reason than interest rates and the worries in Asia. We could have all put our money in Dell but if we did that 3 weeks ago we'd be pissed. I've been down on AMAT but only have a few hundred shares and feel its worth a hold for 12 months, esp. if things hit a slam-dunk bottom in the next month, and the rebound begins (with INTEL showing the way?)
One other point. Everyone loves Alan Greenspan, but even this humble writer wrote on SI over a year ago that inflation was a dead, flea-bitten dog, and interest rates were totally out of whack when prices kept going down, down, down. Deflation, i.e. a bubble bursting, 3rd world depression is something to be avoided at all costs.
Now the Fed wants to bail out the hedge funds and their lenders, and Merrill Lynch probably has more exposure than they care to admit--Their stock has been destroyed, but they recommend PE after it hits an ALL TIME HIGH.--by more than 15%? They're pathetic, and may cause me to sell some of my holdings which I haven't done in 10 years. BTW--Is PFE still the wunderkind everyone loved a few months ago, or is Viagra a wolf in sheep's (lamb's??) clothing? Just a question.
Regards, Royco |
