Bill, looks like it is becoming obvious...
Take care,
______________
Wrong!
Feb 23, 2000
Cramer's Not Writing the Obituary
By James J. Cramer
Get a load of those prices on the New York Stock Exchange. No wonder companies are fleeing from it. The 52-week-low list, something that has been expanding virtually forever, is only getting longer. And now it includes many of the old favorites.
How will this dichotomy between hyper-valued Nasdaq and undervalued NYSE stocks play out? I'm sure that for many people, in their heart of hearts, they feel it will play out with a giant fall to the Nasdaq.
Me? I never think that way. Doesn't make me any money. In the mid-1980s, when indexing to the S&P 500 started catching on, most of the multi-50-billion companies out there were under-10-billions. And people told me it was ridiculous that Pepsi (NYSE:PBG - news) could ever be $5 billion or Merck (NYSE:MRK - news) $20 billion. And I bought them and forgot about them and made a ton of money.
Now the smart money says the same about Brocade (Nasdaq:BRCD - news) and Akamai (Nasdaq:AKAM - news) . Maybe I am dumb money. But I know that theorizing and waxing about it doesn't make anyone a dime. We've got a giant shift going out of the S&P and into the Nasdaq and it's of
fairly recent vintage. I am not going to write a Nasdaq obituary here, especially when the weapon being used against it -- higher short-term rates -- serves only to hurt much of the S&P 500, not the Nasdaq.
So, people ask, how could it all end? Even if Greenspan were to walk into the QQQ option pit and buy position limits puts, I don't think it would end.
But that sure would be better than how he is trying to end it now.
Random musings: I'm spending the next four days with my family and I'm not bringing the dreaded IGOR, my evil personal computer assistant. Peruse the rest of TheStreet.com in my absence and enjoy! |
