2011 has seen a generous sell-off in semis, networkers, cloud computing services and a number of other high growth sub-sectors of tech. If you look at the PEs, PEG, ROE and other metrics on companies from INTC to APPL, AKAM to ASYS, the valuations are now pretty compelling.
Now we know that INTC, IBM, QCOM, AAPL and other plays at the heart of the enterprise, wireless and IT services industries are knocking the cover off the earnings ball.
So, looking back, things were better then expected. Looking forward, things should remain pretty good... although summer is typically a bad time for tech, we have international and macro issues to worry about, budget cuts and Fed actions may remove stimulus from the economy, etc.
Tech looks like a good bet. So what is an investor to do: Buy now, Buy later, Hold, Sell? Intelligent responses appreciated...
The parabolic SLV chart does scare me. I certainly would not try to short it but this isn't a great place to start a position. I always try and arrive at the party either early on on time.
That article did sum up the "crowd mentality" pretty well imho.
Silver scares me.
This guy is looking in the right pond imho.
Probably a few reasons.
1-The silver/gold ratio had grown to historic high numbers. Silver had underperformed gold.
2- Silver is being purchased currently simply because it is outperforming gold.
3- Silver is swinging from being undervalued vs. gold.
4- Silver is easier to buy because you can buy some for $100, what can you buy of gold metal for $100 ?
5- Some people like me prefer silver because they realize that silver has industrial uses.
6- Short covering.
Check out this chart below, silver will come down to meet the gold price performance in the near future.
You are welcome Musk. I just use the tool because it does seem to mark some good buying ops. It isn't too "jumpy". I don't use fast stochastics. My approach is to not worry about the FED or any other macro issues too much. There will always be companies out there making money under all perceivable circumstances. Using the slow stochastic just gives me a buy signal without the emotions of the market getting in my way. I get my shopping list of names and wait. There are usually 1 to 3 times a year in which these slow stochastic buys occur. Just look at a long chart of the S&P.
I don't even want to concern myself as to whether we are in a secular bear or the beginnings of a secular bull....I have know idea. I have some beliefs but they tend to cloud my thinking.
Again, during bear markets, it will not work. This is just the nature of these technical tools, nothing is perfect. You will be paying a "relatively" low price anyway when using it. If you did your homework first and feel confident in your stock picks, then they should work out pretty well over time. Thats the best we can do anyway since we aren't soothsayers lol!
Why do you think GLD has not made the same kind of move? If I was mom or pop I would buy gold over silver, but it has moved 15% in the time solver has move 50%!!
Just curious... I smell something fishy.