Dale, I agree with your assesment on the late summer correction
(or crash if you will). Of course, I don't know if it is gonna
happen or not. But, I have two point to make here:
1:) I think the net sector will have another great run
in july-august earning season. Right now, after some tremendous
gain in March/April, people have nothing to get excited.
As a consequence, the entire net sector is taking a
30-50% haircut now. But the market tone is still bullish,
so I think it's highly possible for another "net rush"
starting in late June, early July.
2:) You don't have to dump all the shares. With the size of your
portfolio right now, I suggest you can try to play put options
as a way to hedge your long positions. Of course, new IPOs do
have options. But if you believe the entire sector is going
down big time, you can look to buy some puts in Ebay, AMZN,
or CMGI, etc in late summer, as a way to protect you.
The nice thing about this hedging strategy is that you never
miss out the huge upside and downside, and you only lose small if stocks stay flat. Also, you only pay captial gain taxes on
your long positions
|
