Jolly_Rancher

PC Business Down the Tubes

Investing in technology is a bubble game. Very few companies have truly reliable profits, most have losses, many don't have a viable product. The ones that have profit, have a hard time keeping profit ahead of capital investment due to quickly changing technology and consumer whims. On top of that, competition is eating this industry alive, except for Microsoft which hasn't produced much in the way of PC Windows/Office innovation in a decade or so. Why invest in this sector? Way too risky...too few profits. Biotech/pharma looks much better. Dow paying 10% looks pretty good too.

Dell Looks Cheap

Jain, You hit the nail on the head. Tech is a sucker's bet. Even the highly touted products are mostly junk. Buy a solid drug company or railroad any day. Even a bank!

36 Opportunities for the Beginning of the Bull

I just set up a pseudonym because I tired of being User X. In this discussion I posted above as User 210417.

Ames, I actually think you and Bill Cara are both correct partially!! I think this is a bottoming cycle but the bottom ain't gonna be pretty -- maybe six months of wicked downs and ups that will pretty much keep the ETF investors thoroughly whipped out. 1975 this is NOT. The best one can do is buy companies whose earnings are not entirely driven by the economy, like selective drugs/healthcare. Again, very company specific. Indiscriminate buying or shorting will result in whiplash. Perhaps dividend plays make sense here -- stable companies only with little economic downside.

36 Opportunities for the Beginning of the Bull

I agree with you, but...

I think GE is probably not the most imaginative pick. Why pick a stock for it's industrial nature whose earnings in the past have come mostly from the finance arm? Also it is composed of heavily healthcare and entertainment. Doesn't make sense. Maybe TEL makes more sense as an industrial conglomerate.