Re: "I believe some are predicting the end of the world as we know it due to the Y2K problem. I'm just predicting more computers and software will be sold to "solve" the problem." Paul
I agree - I think Y2K will increase Intel & Microsoft sales as CIO's throw even more money at the problem...hm... but how will the stock market behave? Sometimes the stock market isn't logical, as if it is based on some rather irrational psychology (e.g. Intel's dysfunctional reaction to Kurlak.) However, over the long-term, the logical fundamentals eventually shine through these momentary dysfunctional blips/dips (i.e. Intel will eventually do quite well I believe.) So, the question I have is: how much money (i.e. %) should a person have in cash in order to take advantage of any potential dips which may occur should the market become momentarily irrational (e.g. in the event mutual fund managers and individuals decide to become more "conservative" by increasing their cash reserves during Q3 or Q4 in anticipation of a potential transitional period over Y2K.) (Note: keeping/increasing money in cash during a transitional period is different than keeping some money in cash in order to take advantage of a potential future dip ---in that one goal is to maintain cash, whereas the later goal is it to ultimately pump more money into stock.) The last few days have been an excellent buying period for Intel and I have been buying, yet, I am struggling with the issue of how much cash should be set aside for potentially yet another Intel buying opportunity? Possibly this is as low as Intel will go? What, with P-III and eventually Merced coming out. I made the decision that this is probably as low as Intel will go (i.e. 124 range), since Intel's splits historically tend to limit the chances of a downside of a decrease. Also, the PR I've read have indicated the corporate CIO's are spending significantly more money on the Y2K problem every quarter than what was previously budgeted. This increase in expenditure for PCs/sw will potentially be so significant it could easily overcome any negative impact of a potential increase of cash reserves by mutual fund managers, institutions, and individuals during this transitional period. What are your thoughts/recommendations? Keep loading up on Intel now, or hold on to some cash during the occasional summer dips and potential irrational market behavior in Q3-Q4? Amy J
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