To: Ron McKinnon who wrote (40718 ) 6/18/2002 9:21:08 AM From: E.J. Neitz Jr Read Replies (1) | Respond to Ron, BWAC...we are at the point in a market cycle(the depths of despair)that is made for investors that have a strong financial background. What do I mean? Well, during the very late 90's and 2000-2001 during the era of momentum, our analytical experience actually worked against us! For me, it kept me out of stocks that were flying upward because I just didnt see the value. It was a great help to me to avoid the devastating losses that so many experienced during the downturn that followed. But now, like in 1990 and in the early 80's, the investors that will really make the big money will be ones that can analyze and understand a balance sheet and assign probabilities to survivorship in those stocks that have been decimated in price but maintain good products and customers and especially sound balance sheets. We need to maintain focus and just slowly buy stocks as "they get hit" and jettisoned for trading/performance reasons rather than for investment reasons. One thing that actually helps our case and ability to get great values, that didnt exist 10 years ago to the large extent it does today, is the number of hedge funds that have amassed huge short positions over the past 6-9 months. Unless a company goes bankrupt, they will have to cover those positions and any extraneous event such as the killing or capture of OBL, could very well ignite an unprecedented stampede to the upside, and probably would occur pre-market!
