Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (87726)	12/30/2000 11:25:03 PM
From: Wildstar	Read Replies (1) \| Respond to of 132070

Michael, This is the first bear that I've been through. I know you have that saying, "All tech stocks eventually go to $4." It seems like most of them have. I just saw a list of ~400 dotbomb stocks that are off >90%. Worthless companies like etoys actually have worthless stocks now days. I always knew that someday it would happen, but it's another thing to actually see it happen. One of my friends had his "savings" go down below what they were 10 years ago. I have a couple of questions for you. 1)Most of the bigger cap companies with legitimate earnings are still selling are sky-high PE's. Do you think these will eventually correct before the bear ends? 2)Do you think that this will be a long bear market in the NASDAQ like 1929-1954, 1966-1982, and Nikkei over the last 10 years? Or do you think this will be like 1990-1991? I don't know what a bear in technology is really capable of. Those previous 20 year long bear markets were in the Dow and S&P. Is technology different? 3)I know that you've been buying calls on selected stocks recently. Do you see yourself (being a contrarian) being net long in the near future?

To: Knighty Tin who wrote (87726)	12/31/2000 9:33:29 AM
From: Tommaso	Read Replies (1) \| Respond to of 132070

Perhaps someone should remind Abelson that had they gone short every time he implied that short was best, they would have been totally broke by last March. Happily for me, I was (at one point, barely) able to maintain my short position on XLK, though I would have made much more money had I never put it in until last March. I remember John Templeton saying of 1987, "It may be that we have just seen the shortest bear market in history." Unfortunately for me, I kept waiting for it go lower. I got spoiled by P/Es in the 3-7 range in the early 1980s and 9-11 looked awfully high to me. I sometimes seem to pay attention to Templeton at the wrong moments. Actually one of my first successful investments, though, was on his advice. My mother's best friend was his sister-in-law and he told her to buy Alcan. So I took all my savings and bought 100 shares of Alcan, and by the time it qualified for capital gains it had doubled. I paid Merrill Lynch what now seem outrageous commissions on both ends of the trade.