Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Rat dog micro-cap picks... -- Ignore unavailable to you. Want to Upgrade?

To: Jim Edwards who wrote (8779)	7/22/2002 11:30:40 AM
From: Bucky Katt	Respond to of 48462

Q: Would people be wise to start putting some money into growth stocks? A: They'd be wise to be very, very careful about blue chips in general -- growth or value. What matters now is blue chips are still badly overpriced and confidence is falling. Faith is a very big thing in the market and it's substantially broken. Until you are given a good reason to buy blue chips, I wouldn't. In accounts where we were given complete discretion, where we weren't held to a standard benchmark -- we have had no blue chips over the last several years. Zero. We are not anti-equity, we are anti-blue chips, although increasingly we favor international blue chips to U.S. blue chips. Q: What good news do you have for us? A: The good news is the market is a whole lot more reasonably priced below 900 on the S&P than it was at 1550. Pain has occurred and 94% of the pain getting Nasdaq to fair value and 77% of the pain getting the S&P to fair value is behind us. Getting to reasonable levels doesn't mean it stops. But how you play it becomes, at least, more reasonable. You can justify owning stocks if the S&P gets below 700. Then life becomes more complicated for people like me as we go from shooting fish in a barrel at a time of one of the greatest disparities in history. There is no doubt in my mind that the next big mistake will be value managers investing too soon. Between 700 and 600 on the S&P, I won't really know what is what. Below 600, I am a bull. By 500, I am a big bull. Let's assume fair value goes to 390. By 390, I am going to look like an idiot because I will have been throwing in all of my cash reserves. From Barron's, How far is down? 22 July issue. online.wsj.com