<<Trufflette: Thanks,the thing is the fundamentals of companies like
CISCO,DELL,MSFT and Intel haven't changed from two weeks ago but what has
changed is the need for cash arisen out of stupid investment by mostly very
'knowledgeable' money managers particularly the Hedge Fund managers. >>
Mohan,
In short, that's A LOAD OF B.S. Present day stock prices are based on FUTURE expectations. Money managers and YOU have a right and need to be scared considering the following:
1) The bond market has called a recession for months now.
2) Tech Large Cap PE's were based on a perfect scenario situation, which has now completely unfolded; in reality, earnings WILL slow down.
3) Dollar is plummetting and it's not for good reasons because it probably deals with positions being blown out(see pt 4).
4) Yes, hedge fund managers are getting screwed. You or I DO NOT know the extent of this, and it's stupid of us to try to guess.
Everybody on this thread keeps thinking they can do what they've "always" done and buy on the dips. If I were to take a survey, I would bet 8/10 investors here have been in DELL since the latest run in the bull market started 5 years ago. Well, sure you could buy on the dips...THAT'S WHY IT'S A BULL MARKET AND people with no experience end up looking like geniuses buying stocks with absurd valuations. This is NOT the same scenario as before, economic conditions now blur the picture.
The fact that people still claim to be up 80% on their investment or are saying "still higher than last month," makes me shudder on how low we can go because it means the money managers are in the same profitable positions and are on the table selling. |
