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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: Ploni who wrote (3038)2/16/1998 10:09:00 AM
From: Roger A. Babb  Read Replies (1) | Respond to of 18691
 
Charles, we are looking at more than just a correction upcoming on high flyers like ITWO, I expect a major drop that will stay down. As earnings and growth rates decline while the market makes new highs, stocks are becoming more overvalued at a double rate. Last year everyone said "earnings don't matter, only revenue growth". Now they are starting to say "current growth doesn't matter, only potential". The time is coming when fundamentals will matter again. Today's market is operating on the "greater fool" theory, but at some point the fools will run out of money.



To: Ploni who wrote (3038)2/16/1998 10:42:00 AM
From: Mr Logic  Respond to of 18691
 
Charles, >>"buy on the dips,"<<
this expression has me grinding my teeth in the context that I normally hear it.
Buying on the dips implies that the cheery investor knows that their stock can only ever rise. So if it falls back, it is a great buying opportunity as it will inevitably rise back again.

But they have often been right...
P.