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Strategies & Market Trends : Don't Drink the Kool-Aid Kids -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (147)	3/14/2001 6:24:43 PM
From: John Pitera	Read Replies (1) \| Respond to of 1063

It's amazing the way the CNBC folks talk up GE every single chance they get, you would think that was part of their job description. I think GE has traded 50% higher than it's deserved the last 4 years due to the cnbc effect. ---------------- bill meehan: Bill Meehan MARKET 3/14/01 4:22 PM ET Listening to Bob Pisani on CNBC a few minutes ago, he was noting that folks were selling "winners" today citing cyclicals, etc. I think there’s much more to it than that. I believe that it’s become increasingly clear (and reiterated daily by John "Horror of" Chambers) that hope for a brief economic dip followed by a rosy second half is being replaced by recognition that it’s unlikely to be that neat and easy. If you’re on margin you should consider getting professional help, and I don’t mean a financial planner. If you’re 100% invested, as some of the permabulls have consistently recommended through thick and thin, you shouldn’t be. Even if I’m wrong and the market turns tomorrow and never looks back, diversification is the only way to fly if you want to reap realistic and attractive long-term returns. Unless you’re a seasoned pro, you should never have all of your money in the stock market, if for no other reason than that a cushion allows for the flexibility to act upon opportunities quickly -- when you believe the time is right. Sorry I didn’t have the opportunity to provide any specific trading opportunities today. It was just too hectic and I didn’t do a thing myself. I’ll try to drop by tomorrow with a few ideas assuming that it won’t be nearly as hectic here in the trenches. Have a pleasant evening and think about how safe your "defensive" holdings are, if I’m right about how much downside lies ahead. Better yet, come to your own conclusion about where you see the potential “worst case.” For those who are dollar-cost averaging in a diversified, well thought out manner, stick with your plan. For those of you who are dollar-cost averaging into only aggressive funds, think about changing your strategy. For all readers, keep calm. If you aren’t sleeping well at night take action tomorrow morning.