Monday put Net investors' nerves on edge. But based on
reader email, many held fast to Internet stocks and funds, and some even bought more.
While others fled the red, reader
jumped into the fire.
"I asked my mom for an emergency loan of $5,000 so I could buy
Munder NetNet yesterday," he writes. "Lucky for me, I've been a pretty good kid lately, so she gave me the money and I jumped in. My sincere thanks to those who sold. It was a pleasure doing business with you!"
showed no fear. He writes, "I had been out of the Nets for a few months, and to be honest, I had no real plans to buy any yesterday. But when I saw the
down over 130 just before the close I picked up a handful of
"If the economies of the world, including the U.S., are growing enough to support the move to cyclicals, etc., how can that be bad for tech sector?" asks
. He shopped the drop Monday and Tuesday.
"I had sold half my AOL at 126 a few weeks ago, before the run up to 175 (oh well). I was waiting for the right opportunity to diversify a little in the technology sector, and/or buy back AOL. Monday and today gave me that opportunity. I bought a small amount of AOL,
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wanted to buy more, but was sweating a possible margin call. "I was extremely nervous yesterday," he says. "I use lots of margin, so I was in a very vulnerable situation. I'm unable to buy because of lack of money. I was expecting a margin call. I didn't sell. Instead, I tried to find money. I sent a fax to a German fund to sell my shares. I also have a line of credit with a bank which I was prepared to use, should a margin call come. I have strong belief in the future of the Internet and the two stocks I hold: America Online and
It was a day of reckoning for
. "I profited by the rise in Net stocks although I knew it was a bubble. I sold most of my Net stocks last week and early Monday, before everything tanked. Why? Because valuation was insane and the market was looking shaky," he says.
also got out -- but he got right back in again. "I couldn't take it any longer -- I sold America Online yesterday at 130 and picked it up again this morning at 122 as soon as the trend seemed to stay in the green."
Some found the falling numbers ... numbing.
"I sat motionless trying not to move lest my stocks fall further," writes
"It's become the big crap game of the stock market with the greatest risk and rewards. And for those of us too faint of heart to participate, we stand on the sidelines watching the 1990s equivalent of the old Roman Coliseum spectacle with lions and gladiators and the spilling of blood, which in this case is green," writes
, who says tech represents 99% of his funds investment, urges caution. "In my opinion, investors in the tech arena should strongly consider both (a) significantly reducing, or eliminating, margin positions and (b) restricting tech holdings to only the most prominent," he says.
says he's just going to hang on and ride it out. "I've owned
since late 1997 and
since early 1999. I've been tested many times and have held throughout. I have to tell you though, yesterday certainly was a spooker. But I'm stubborn. I refuse to give in. I'll ride these things down to the ground if I have to. I know I might regret it."