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

To: 16yearcycle who wrote (11359)	5/7/2002 2:16:59 PM
From: Sultan	Read Replies (2) \| Respond to of 57684

Other day I was browsing through the recent edition of Peter Lynch's first book, One up on Wall Street, if I remember the title correctly.. In the preface for this new edition, Mr. Lynch makes few points and the big one being that when he decided to quit being a fund manager in 1990, a lot of commentators were saying that was a smart move since obviously what happened in 1980s in terms of market gains could not be sustained.. Ten years later, in hindsight all of them were proven wrong.. It is quite possible that 1990s may not be repeated any time soon since we have a number of factors, from introduction of internet to y2k spending that came into play.. Personally, I still feel that you can make very good money going forward because there are many many tech stocks, where they are either operating on near break even basis or burn rate is acceptable (considering huge amount of cash on the balance sheet) that when IT spending eventually perks up a bit, you will make outsize returns in these.. Certainly better then the indexes.. May be we will never see multi baggers in weeks like 1999 but early 1990s it took quarter after quarter of earning numbers and slugfest of gradual improvements in majority of the tech stocks.. So gains were gradual, overtime.. And we will go back to that.. I hope.. How long will it take ? who knows.. Could one buy and hold and hope to find another MSFT or DELL QCOM etc.. That I don't think we can count on..