Jess, Welcome to the thread. Those same words were said by biotech speculators 5 years ago. These bubbles in stock prices come and go and have absolutely nothing to do with whether or not the Web is going to be a great deal in the future. Biotech has changed the world and is still going to be a great factor in the world's future. But 90% of the stocks have crashed and burned. Ditto for the Web, just as it was for Japanese stocks, hamburger stocks, energy stocks, electronics stocks, tulips and all the other manias in investing history. A handful will survive and prosper. More will go belly up. And the majority will survive and not prosper.
However, I hope you noted that I mentioned in that article that I was not buying puts (and I never sell manic bubbles short) on the Internut stocks again, yet. I bought IIX index puts last spring and summer and made a nice 800% or so, net net <G>. But right now, there are too many people who know the stocks are a joke and that is not the best ambience for making money on long puts. What I want is for all the bears to give up and for the bulls to say there is no chance they will ever go down. Then I buy the downside and print money.
I have to argue with your basic investing philosophy. You seem to think that buying at the top of the most overpriced market in history is smart. I'm not saying you can't make money buying overpriced fluff and selling it to some schnook later on. I'm just saying it is a very risky game and few get out in time to save them from financial ruin. Buy low and sell high makes much more sense to me.
Good Luck,
MB |
