I can’t say I have that feeling about microsoft. Strictly my opinion. I think the market is really, really high. When you see caterpillar at $800 and Goldman Sachs over $900, I think those are crazy high numbers even though those are great companies. Wasn’t msft $370 2-3 weeks ago?
One thing I consider is how big the swings are in the market these days. I got my buddy into some American Express the other day when it dropped 28 points. Intel, at $18, what is your risk? $2- $3? I suppose that’s the same picture of 10% instantaneous points on a $300-400 stock, but there’s a different psychological freakout when your stock drops 30 points!
I agree about the swings. The market is very expensive now. The swings in many individual stocks lately have been breathtaking (in prices and percentages).
That’s good info. Thanks FRiend!!
28% is what is called a buying opportunity.