We have dirt-cheap stocks, investor pessimism all around, foolish
selling, forced selling, plummeting energy prices, and a RBI that has
cut rates , committing to do everything it can to ignite the economy.
This is the historic recipe for making a fortune in stocks. The
question is, when the stock market finally recovers (and it will!),
what could lead the way?
In the major rallies that followed the last few bear markets, the big
winners were tech stocks...
· The stock market last bottomed in late 2002. By the beginning of
2004, tech stocks (as measured by the S&P Information Technology
Index) had doubled.
· The previous market bottom came in late 1998. After that low point,
it didn't even take a year for tech stocks to double. (Of course, that
was back in the dot-com days.)
· In the bear market before that, which bottomed in late 1990, once
again, tech stocks soared... up about 50% in just five months.
Conditions are ripe for tech right now...
Tech stocks have fallen 50% in the last 12 months and are down 75%
from their 2000 highs. Investors are completely ignoring them...
Banks, real estate, and commodity stocks get all the headlines. But
you want to buy things when nobody's talking about them. And tech
stocks are the cheapest they've been since 1995, on a price-to-sales
basis.
Tech stocks are still in a downtrend (as measured by shares of XLK, a
technology stock exchange-traded fund). If we've learned anything over
the last 12 months, it's that we don't want to try to catch the ol'
falling knife – we don't want to buy stocks in a downtrend
We are near a historic buying opportunity in stocks. And based on the
last few bull runs after down markets, major tech stocks should be on
your buy list. They performed spectacularly coming out of the last
three markets. They could easily do the same again.
When we start to see the uptrends, you need to be a buyer – of stocks
in general and tech stocks in particular.
The problem is that past performance is often not repeated in future. I
would wait for an up turn to start before piling into tech stocks (or any
stocks).
On Thu, Nov 20, 2008 at 9:50 AM, sagar <ssesexpo...@gmail.com> wrote:
> We have dirt-cheap stocks, investor pessimism all around, foolish
> selling, forced selling, plummeting energy prices, and a RBI that has
> cut rates , committing to do everything it can to ignite the economy.
> This is the historic recipe for making a fortune in stocks. The
> question is, when the stock market finally recovers (and it will!),
> what could lead the way?
> In the major rallies that followed the last few bear markets, the big
> winners were tech stocks...
> · The stock market last bottomed in late 2002. By the beginning of
> 2004, tech stocks (as measured by the S&P Information Technology
> Index) had doubled.
> · The previous market bottom came in late 1998. After that low point,
> it didn't even take a year for tech stocks to double. (Of course, that
> was back in the dot-com days.)
> · In the bear market before that, which bottomed in late 1990, once
> again, tech stocks soared... up about 50% in just five months.
> Conditions are ripe for tech right now...
> Tech stocks have fallen 50% in the last 12 months and are down 75%
> from their 2000 highs. Investors are completely ignoring them...
> Banks, real estate, and commodity stocks get all the headlines. But
> you want to buy things when nobody's talking about them. And tech
> stocks are the cheapest they've been since 1995, on a price-to-sales
> basis.
> Tech stocks are still in a downtrend (as measured by shares of XLK, a
> technology stock exchange-traded fund). If we've learned anything over
> the last 12 months, it's that we don't want to try to catch the ol'
> falling knife – we don't want to buy stocks in a downtrend
> We are near a historic buying opportunity in stocks. And based on the
> last few bull runs after down markets, major tech stocks should be on
> your buy list. They performed spectacularly coming out of the last
> three markets. They could easily do the same again.
> When we start to see the uptrends, you need to be a buyer – of stocks
> in general and tech stocks in particular.
Do you mean one should rely on Tech Stocks alone or ,for that matter, rely
largely on them? Cuz I see some really good stocks on 80% sale, viz Tata
Motors, Tata Steel, Ranbaxy, Hindalco and soon to join the list are the
cement companies.
Point being, it'd be worth ones buck to invest based on the "discounts" that
are available as opposed to speculating the future of one sector over the
other.
> We have dirt-cheap stocks, investor pessimism all around, foolish
> selling, forced selling, plummeting energy prices, and a RBI that has
> cut rates , committing to do everything it can to ignite the economy.
> This is the historic recipe for making a fortune in stocks. The
> question is, when the stock market finally recovers (and it will!),
> what could lead the way?
> In the major rallies that followed the last few bear markets, the big
> winners were tech stocks...
> · The stock market last bottomed in late 2002. By the beginning of
> 2004, tech stocks (as measured by the S&P Information Technology
> Index) had doubled.
> · The previous market bottom came in late 1998. After that low point,
> it didn't even take a year for tech stocks to double. (Of course, that
> was back in the dot-com days.)
> · In the bear market before that, which bottomed in late 1990, once
> again, tech stocks soared... up about 50% in just five months.
> Conditions are ripe for tech right now...
> Tech stocks have fallen 50% in the last 12 months and are down 75%
> from their 2000 highs. Investors are completely ignoring them...
> Banks, real estate, and commodity stocks get all the headlines. But
> you want to buy things when nobody's talking about them. And tech
> stocks are the cheapest they've been since 1995, on a price-to-sales
> basis.
> Tech stocks are still in a downtrend (as measured by shares of XLK, a
> technology stock exchange-traded fund). If we've learned anything over
> the last 12 months, it's that we don't want to try to catch the ol'
> falling knife – we don't want to buy stocks in a downtrend
> We are near a historic buying opportunity in stocks. And based on the
> last few bull runs after down markets, major tech stocks should be on
> your buy list. They performed spectacularly coming out of the last
> three markets. They could easily do the same again.
> When we start to see the uptrends, you need to be a buyer – of stocks
> in general and tech stocks in particular.
