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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (135938)	12/23/2001 10:17:34 PM
From: Paul Merriwether	Read Replies (1) \| Respond to of 164684

<< paul, i'm mostly in money market funds since the yahoos bailed me out of my biotechs in early 2/2000. relative to the nasdaq, my mm are up 150% since 3/2000. ;-) i have some dough in a few stocks that believe will outperform or, frankly, just aren't worth enough to sell right now. or, both... ;-) >> Skeeter Timing is everything. While you moved into mm at exactly the right time(3/2000), I am questioning if the mm is the right investment 12/2001. Its not an idle question--rather its a 2.5 trillion dollar question. I too was holding short term bonds and CDs after selling out late last year. I bought into the market after 9/11 as fast as I could raise the cash(waiting for my staggered CDs to mature) and am sitting on a nice gain. The question--is it going to stagnate or spike(up or down). I think that the companies that have a high probability of surviving a 2-3 quarter recession, track record and earnings growth are worth investing(or atleast holding). Even with a PE of ~ 57(100/1.75) I would prefer to hold such a company given the above criteria. OK, simplistic reasoning(stock vs. bond yield) but that's not sufficient criticism. On the other hand, if there is a remote chance of a 1929 like scenario, I would much rather hold on to my MM. My reasoning against that is that a lot of fat has been taken out of the market with a 70% drop in naz. Since most of the (long) margin speculators are wiped out and the short interest is at an all time high(which ofcourse means (short) margin speculators), I feel that the '29 scenario is unlikely. In any case, I don't want to sell out on my significant gains over the past three months and generate a mother of a tax bill! best -pwm