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.

Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: patroller who wrote (1933)	1/9/1999 12:21:00 PM
From: kolo55	Read Replies (5) \| Respond to of 2542

I've been getting concerned about the overall market... the bubble in the internet stocks in particular. It is possible that Amazon hit its speculative peak on Friday. History shows then when these kind of speculative bubbles blow, it can have a negative impact on the overall market. Right now there is an incredible amount of money chasing stocks in the market, but if $30-40B of internet hype disappears... well lets just say its hard to believe this won't impact the buying binge going on. I think the rest of January will be strong, but sometime next spring/summer there is a significant probability of a pretty serious drop. In spite of this, the news I'm hearing in the ECM sector is getting better and better. There will be an incredible amount of outsourcing announced this year. This article you posted on the Jabil thread supports this: Message 7106532 So I feel caught in a dilemma; I still think this sector has a long way to run, and I want to stay in for the long haul. Since summer, I've been Mr. Piggy in the market, buying heavily, and using lots of margin. The question for me, is whether this kind of aggressive buying should be continued. On Friday, I decided I needed to start reducing my margin. So I began by trimming a bit (about 3%) off my margin portfolio. I plan to trim about 10% by the end of January, and another 15-20% in February. Right now I'm trimming positions in stocks where I don't have as strong a long term view as my core positions. Several were not ECM stocks. Anyway, I thought I'd start raising the issue. Paul