InvestorsHub Logo

lentinman

05/24/06 1:27 PM

#44694 RE: Lazarus #44650

LAZ:

You contend that you will make money in ANY market. Presumably, that is because you are arrogant enough to believe that 99% of the population is stupider than you. I may be arrogant, cocky, conceited, whatever.... But, I'm humble enough to believe that I will get killed just as much as anyone else in a market that gets killed .

In fact, until proven otherwise, my belief is that microcaps will get killed at a substantially greater rate than non microcaps. And, the experts agree. The argument is that microcaps (on average) constantly need money. When capital (or liquiidity) dries up - as it inevitably does in a recession, microcaps get hurt a lot more than GE!

Whether SOMEONE can make it being 100% long in microcaps if the markets get obliterated is highly questionable. But, even if that SOMEONE exists, they don't exist owning a diversified portfolio of 50 stocks. They only exist (if they are lucky) owning a handful OR having almost all their stocks in one sector that happens to buck the trend - such as (MAYBE) oils or metals or bird flu - or short positions.

Whether the markets collapse or not is another issue entirely. However, you thumb your nose at the markets because you think you are smarter and better. I don't believe it.

Len