i think the fed will engage in one more bout of intrest rate hikes, 1/4 of a percent on June 28 and then declare that the threat of inflation is diminished for the near future.
the fed does not want to tighten further, particularly given the "tax" on the economy of hihger oil costs.
the fed does not want to inject itself as an issue in the presidential election, that is, as a "threat to prosperity."
technology stocks are where the growth of the US economy is to be found not in retail, or consumer goods, or automobiles, etc.
the rest of the world is eager to use the technology and is behind the US in deploying it and profiting from it.
I think the NAZ will resume a bull market after June 28. THe Fed will not tighten again on August 22, a little over two months from Election Day.
With no further rate hikes to restrain growth (business and consumer spending) investors will begin buying leading technology stocks enthusiastically again.
My favorites are EMC, CSCO, SUNW, RMBS, CTXS, MU and to a lesser extent, CMGI, RIMM, INKT, and INSP. |
