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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Teri Stephenson who wrote (475)	5/22/2000 4:56:00 PM
From: Eric Wells	Read Replies (1) \| Respond to of 57684

I feel you are wrong here. Teri - thanks for your message. I obviously disagree with you. The momentum-driven market that we have seen over the past two to three years has driven discussion focused on individual securities. In the past, people would post messages such as "I like AMZN" or "I like YHOO" - and everyone would buy AMZN or YHOO, the stocks would go up and everyone would make money. I feel the market is different now - I believe we are entering a new era where stock prices are no longer driven by momentum investing (I suppose it's more of a reversion to an older era). As such, when someone posts "I'm buying DCLK", I'm in inclined to ask several questions - such as: 1. What are the reasons for purchasing the stock at this point in time? 2. What portion of your portfolio are you allocating to the stock. 3. What are the risks involved in owning the stock? 4. Are there other securities in your portfolio that can specifically offset some of the risks introduced by owning this stock? 5. How long to you plan to hold the stock? 6. At what price (either up or down) will you sell the stock? If you're investing on momentum, there's no need to ask any of these questions - just buy the stock, close your eyes, hold your breath and pray it goes up. However, if you want to make money in this market, I suggest that you ask yourself all of the above questions when purchasing any security. Nothing "must" be discussed on this thread - but the questions above deal with very important issues that relate to making money in this market. Now again - tell me where I'm wrong here. Thanks, -Eric