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Subject:  Re: Is the party over? Date:  5/9/2021  1:29 PM
Author:  BruceBrown Number:  102705 of 103812

A lot of the high growth, limited/no earning stocks have gotten whalloped. Depending on your view it is either a correction and buying opportunity or reality setting in. I tend to view it as the latter based on going through this in the late 90s but I'm sure many will say "it is different this time".

Speculation vs. investing usually always leads to a wallop. The divergence between growth and value is now in the process of being corrected.

And if you got in early and made 100%+ you can afford to lose some of that profit but I had a lot of coworkers in the 90s use the drops as buying opps only to see them throw away huge profits and end up with losses.

I'm too close to retirement to gamble on those stocks and only hold token amounts.

Yes, don't gamble beyond your token amounts. There is a huge difference between holding the mega-caps such as Apple, Google, Microsoft, Facebook, Amazon compared to things that got so speculative price wise like Zoom, Peloton, Fastly, Cloudfare, CrowdStrike, Docusign, Datadog, Snowflake, DraftKings, etc... . Keeping an eye on the latter group to see what survives the current rubble will be interesting.

Investing now seems to be "find the latest craze/fad and jump on board" whether it is tech stocks, GME, NFTs, crypto currencies, baseball cards, housing, etc. Almost like surfing, if you catch the wave right you can make serious money, if not then you'll crash.

Every generation gets to go through some form of the speculative phase. Our generation got to experience the dot-com and telecomm boom & bust cycle (some loud memories still ringing in my head from all of that - and plenty of posts from me in the archives are available to view). We prefer to own it all these days (all sectors that is) and not play the rotation game, but just let the business cycle run the course it always seems to do over and over again with great companies and of course a good chunk in index funds and great individual company stocks to capture it all. No need for baseball cards, crypto currencies, NFTs, ARK funds, Reddit story stocks, etc... to reach retirement nirvana.

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