Quote from ronblack:
I also like this strategy but I would hesitate implementing it. I recall it was very popular in the late 1990s. many with investments in dot.com bubbles never recouped their money. The key question is about the stop-loss. If all stocks start going down in synch when do you say this is it and you get you?
Agreed, but dot com is a little like gold, speculative and a sector where the masses rushed in.
I'm taking the strategy what is hyped is when I become defensive. For example I don't trade gold stocks and in Australia we have a very large number.
Materials and energy make up a large percentage of the ASX, I have small holdings in material but more so in energy, oil, gas and coal.
I'm spreading my risk across many sectors, small positions, Id like to add Uranium and some telecom plus a lot of others.
If the ship goes down, I think I'll have company, we're all going down.