Harry,
Your, <"My real concern is that prices cannot forever outrun earnings and when the correction comes it could be very nasty and brutish and not necessarily short. Intel will be taken down in that kind of downdraft too, even though it's not deserved. I have not figured out what to do. Any suggestions?">
As you know,I have been anticipating a correction for some time now. While at first, I tried to protect my profits by buying IBM Puts and selling IBM Calls, I have abandoned that strategy. Reluctantly, I admit...it just plain didn't work. So I caution you... there is a good possibility that I could be wrong again.(g)
I continue to believe in the long term growth of the Large Cap Techs. They remain, by far, the highest percentage of my portfolio. However, I have been a net seller of these companies in recent months. At the same time, I have been buying the Smaller Cap Techs with the proceeds. During the last two years this has been a difficult position to be in. And I admit I held some of these same companies during these bad times.... But I believe the market is now in the process of rotating into them, and I have been loading up.
Mind you, this is just one man's opinion.
Regards,
Jules |
