Sneak Preview: Get the Right Rally Fit
12/21/06 - 05:40 PM EST
Jim Cramer
In light of these numbers, Microsoft and Cisco were both mistakes of the highest order, because owning them prevented you from making big money in other tech names.
What did I do wrong, and how can you stop yourself from making the same mistake? I didn't make sure the stocks I was recommending were actually levered to the rally when I told you to buy Cisco and Microsoft. I painted with too broad a brush. The rally in "tech" that I'd called was actually a rally in gadgets and the companies that make gadget components. It was an iPod, cell phone, PlayStation Portable, Palm Pilot, BlackBerry rally, a gadget rally. And I knew that when I declared the rally on June 22 because I said the rally would be driven by tech product cycles. These gadget companies all have their own product cycles, cycles that would be moving up toward their peak in the fourth quarter of 2005 and the first quarter of 2006. The gadget makers were coming out with new devices, and they were set to move a lot of merchandise. I knew this was a gadget-driven rally, but I still wrote MSFT and CSCO on my hands for emphasis, be-cause I believed that strength in one part of tech would lead to strength in all parts of tech. It turns out that a rising tide does not lift all ships.
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