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Strategies & Market Trends : Mu Gamma Lambda -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (7252)	9/17/2001 6:35:57 PM
From: Original Mad Dog	Read Replies (1) \| Respond to of 10077

Just as there was no real precedent to last week's attacks, there is no real market precedent to guide us now. We may recover tomorrow. We may have another attack tomorrow. Nobody knows. I have heard a few predictions that the beginning of the counterattack will be a good time to buy, because the market shot up at the beginning of the Gulf War. I can outline all sorts of ways in which this is different. I can't tell you for sure that the market won't behave the same way. But the battle this time is against a less visible foe and will undoubtedly take longer and result in more casualties. We can spin out nightmare scenarios until we drive ourselves to the nearest tequila bottle, but the truth is we just don't know. And the market hates that answer. My own strategy, if you can call it that, is to look for stocks in sectors which will not be affected by this type of madness. Things like certain types of health care stocks, maybe conglomerates with both defense and nondefense businesses. And it probably wouldn't be a bad idea to do a LTBH on the strongest player in each of the most beleaguered industries. For example, airline stocks.....the government will not allow each and every one of them to go bankrupt. United Airlines' market cap got below $1B today, I believe. Pick the strongest airline by market position and balance sheet, and just go long in an account you can afford to have just sitting there for a few years. When this madness is over, and all madness ends sometime, you will probably look at that as one of the smartest investment moves you ever made.