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Great posts on the Celera debacle. Great lesson for us all. I might note that the position of Globalstreamer, who suffered mighty losses by having 100% of his money plus margin to boot in one single stock - bears little resemblance to my diversified portfolio of 26 stocks - which, by the way represents about 20% of my overall assets if I include the securities purchased on margin. Again, I have no debt other than the margin and a small mortgage, but I'm heeding everyones words of caution about margin. Clearly, I don't have all of my eggs in one basket. A few things to remember:

- The overall portfolio has never been in the red since I opened it two months ago - and I bought at the current year's low. If the entire market declines more than 30% this year and my portfolio marches in lockstep, I'll have to put more cash in my account. However, as I've said, I'm reducing my margin exposure. The market won't stay down forever. I have the ability to outlast the downside unless it lasts more than five years.

- I do not hold a single biotech stock in any portfolio.

- I have just a 14% exposure to technology. The majority of my technology holdings consist of GLW. I own just a few shares of a few small tech companies. GLW, a $32B company, is one of the world's largest producers of fiber optic cable. It also makes solar panels and announced last week that it has developed a process that allows it to produce solar panels more quickly and less expensively. I see increasing demand for both of these products. GLW has a strong balance sheet with lots of cash, very little debt, extremely high ROI and ROE, a P/E less than 6....I could go on.

My largest single holding is AIB, and I feel very comfortable with that position. Very solid international bank trading for about 20% less than *book value* at the moment and pays a nice dividend. Many believe that AIB's assets are undervalued, particularly their 25% stake in M&T Bank - which Berkshire Hathaway also has a stake in, by the way. See: http://seekingalpha.com/article/66818-allied-irish-bank-dive...

- Say what you will, but 26% in basic materials and 18% in industrial goods at a time when China is building out infrastructure at a record pace and has a projected GDP growth rate of apx. 10% this year and for the next 5 years provides a lot of support for basic materials and the industrials that I've chosen. Again, read China.inc. I recognize that economic slowdown in the West results in some level of slowdown in the east, and we have to be concerned about inflation - but I believe that industrials/basic materials are a good place to be at the moment. Infrastructure in the US is in sad need of rebuilding. See: http://www.builderspace.com/features/infrastructure-investme...

Demand for titanium is only going to increase over the next few years as the US rebuilds its military fleet. US and European aerospace industries have a projected growth rate of 7% this year. Aerospace consumes 80% of titanium. The world fleet of passenger aircraft is expected to double by 2025. Titanium demand is expected to expand for the next 10 years.

My optimism isn't based upon having my fingers crossed. I've done quite a bit of analysis and have detailed a worse case scenario in the detailed spreadsheets that I use to track my risk and performance.
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