tonyleachsf:Not sure if it will stay, but I just saw GOOG passed the 700 mark. I wonder if their Halloween Google Doodle had anything to do with it... Woo-hoo!
That's a climb of 100 points in less than a month. How long 'till 1000? Or the bust?
Yep, I think it's going back there. It's almost half-way there already.
In response to don't listen to the experts on CNBC, look at GOOG as an example. I mean Cramer gave GOOG a sell rating about 2 1/2 weeks ago and the last couple of times has supposedly been wishy washy (not as strong of a sell as on the 31st of March). Moreover, I really think the PEG ratio analysis resonated with shareholders, since GOOG is a value company in a growth industry. The transition from growth to value is why it has had a very hard course and that's fine by me. If MSFT and YHOO have integration problems, I expect GOOG to once again become a growth stock with fierce momentum.
I do think GOOG will pull back (i.e. to $475 per share from $525). The $525 is an after-market price thus it is very volatile as it closed slightly under $450 per share. I don't know whether to tell people to wait to buy it since I own GOOG and I really would feel bad if you buy it later at $600 per share or that you buy it now and it falls to $360. I really think the upper limit is $800 and that there is heavy support at $450 (that's why if you culd get in at $425 or less, I really think you got a steal). While the options market may affect it in the short-term, the fundamentals of a solid company, in my belief, will outweigh downward pressure unless there isn't demand to see it, such as is in the case of a depression for which we are not even in a recession. It's an economic slowdown and if GDP happens to be negative, it would be a very minor recession. Besides, recessions are a natural order of the economy and can really prevent more severe recessions or crashes when no one is able to price risk accurately.
The bear market to 11,509 was a godscent; it allowed people to price risk in the market. A 20% drop provided opportunities for some and delivered pitfalls to others. I really think that's why its so important to have an asset allocation consistent with your risk tolerance, age, financial status, time till you need the money, time till retirement, among other factors.
Aqua