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Technology Stocks : Wind River going up, up, up!

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To: Stephen M. Neal who wrote (505)2/12/1997 12:22:00 AM
From: Bonnie Bear   of 10309
 
en masse dumping of tech mutual funds is causing grief everywhere, this is also happening to SDTI, APCC, blue-chip techs. What in the
**** does a Barron's editor know about real-time embedded systems anyway. Panic selling does not appear to be over, I see signs of fear and panic starting to set into the NYSE as a record-high dollar is destroying overseas sales projections, overpriced P/Es have no place to go but down, and commentators are mouthing the words "correction". Go short, not long, make your money safely assisted with gravity anywhere there's an obvious opportunity.
Look at IBD stats:
two -year period/ avg annual return/ next 5 yr ann return
1954-55... 41.7%... 8.9%
1935-36... 40.6... -7.5
1927-28... 40.5... -11.2
1975-76... 30.3... 8.1
1995-96... 30.1... ?
This says the "buy-and-hold" investor is gonna be pretty unhappy if past statistics is any indicator of future market behavior. Bear markets tend to shrink P-E ratios.
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