To: waverider who wrote (25525 ) 7/11/1998 6:09:00 PM From: Elmer Respond to
If I was listening to the market, I would now be 100% invested in internet stocks. For some reason, I think there is more risk in the internet stocks than the energy service stocks. If one truly waits for the market to tell them when to invest in something they should be 100% passively invested in the market that is telling them what to do. In my opinion, money is made by taking advantage of the opportunities the market presents you with. Right now I feel the market is providing me with one hell of an opportunity to buy into a story with what I think has an outstanding 5-10 year outlook at a time when I feel the market as a whole is overvalued. As long as one knows the risks they are taking, there is nothing wrong with averaging down in the energy service sector. Just like there is nothing wrong with someone else averaging up in the internet stocks, as long as they are well aware of the risks they are taking. If one isn't willing to take the risk of being wrong, he/she should invest in the indexes or cash. I will be averaging down and I know the risks I am taking, but I also know what the potential rewards are and I am willing to take that risk. I don't have the time or the market savvy or psych to know what the market is telling me. However, I know what my DD is telling me and that I can understand. I am not saying that my DD will be right, but I am willing to invest my $ in my beliefs and not the beliefs of anyone else or everyone else (the "Market"). This doesn't mean I am not willing to listen to other peoples' opinions. I have learned a great deal about the industry and the companies within it from this thread.
