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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Gold Beach who wrote (25107)	12/14/1997 5:21:00 PM
From: McNabb Brothers	Read Replies (2) \| Respond to of 176387

Don, I'm only 39 and I have my IRA fully invested, but more into blue chip companies! I would sleep like a baby with colic if I were fully invested in high tech companies in my IRA! I believe I would wake up in a cold sweat crying ever hour! I read on your profile where you said riding a motorcycle was as exciting as being invested in high techs! All I can say on that is one can be killed very easily by both, for I have buried a few motorcycle riders in my time, and I have seen many a high tech go to nothing in a matter of days if not hours! I have said in the past that I can see a bear market for US stocks and Asia may be what sets it off! We have always had bear markets in the past and I do not see why we can not have one now! We are due for one and I believe Asia will be what puts us into one! We are having wage inflation here along with goods deflation being import from other countries which causes our companies to have price pressure put on them, and I can tell you real quick that can not last long! I've ask Paul Levy what he thinks and I'm hopping for an answer real soon, for he tends to see both sides of the economics that is taking place! I'm a firm believer in that stocks tend to forcast whats ahead and I see alot of high techs that are telling me that we are going to see some hard times ahead! I will also predict that most of these companies that are warning now with not even make their warnings numbers and we will see another drop when the actual earnings come out! As far as DELL goes, I've have always said it is a first class company in the high tech field in that they have put together a high tech solution to getting the computer into peoples hands! But I have also said that DELL IS NO DIFFERENT than any other company out in the real world and other compnies will duplicate their success formula! They will come under margin pressures as all other high tech companies have in the past! (Except maybe MSFT, but then you have the US gov. putting pressure on them!) I do not think things look that good, but I may be wrong completely, so that is another good thing as to how we trade for it is almost like a hedge fund and so far for the past 6 years it has worked out great! One of these days I see us selling naked puts on great companies, but we are not anywhere close as of right now IMO! Good luck to you, and I would recommend some cash and if you feel as though you need to stay fully invested diversify your portfolio to include some dividend paying companies and some of the companies that are more Blue Chip! Hank