Drake,
Correct me if I'm wrong but I think I read somewhere that AOL has 60% of the ISP market. I know I read that AOL signed up a million more members in the last 2 months. So the numbers speak for themselves: People want AOL.
I've heard all the arguments about how this or that is going to come along and hurt AOL. Meanwhile AOL keeps on cutting deals, adding millions of subscribers, and dishing out the good news.
I believe the internet is here to stay. The best way I know of to play a sector is to be long the bellwether until I'm proven wrong. So I'll be long AOL until I'm convinced that investing in the net no longer works. We're not even close to that point yet.
All the cyclicals that have run up are now overbought and the techs are oversold. When the market rebalances those that sold off the leaders and bought cyclicals will be stuck with them, and the big boys that have been waiting to unload these losers will have done so and bought the leaders, which they will then take to new highs. Then all the analysts will come on CNBC and say "well we've been looking for a correction in the leadership stocks for some time, we had one, we think it was healthy, we used the opportunity to pick up some bellwhether stocks that we think were bargains at 20% off their highs, and now we're set to move higher."
I've seen this scenario play out too many times before to think that this time will be different. In other words, if I'm wrong and IP,CAT,JD etc. turn out to be our new leadership stocks then I'm done playing in the stock market. I'll put my gains in a MM acct. and go on a long vacation.
Regards,Lee
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