Stan, I agree with you about the market being very toppy. However, millions of $$'s are pouring into the market from fund managers who have to do something with it. Never before has so many employees invested in 401-k's. It's becoming 2nd nature for families to poor 10-15% of their monthly income in them. As you well know, the more concrete you have, in this case $$$$, the higher the foundation or market. Also, Greenspam opened the flood gates for $$$'s to rush in after giving the market a definitive answer not to raise rates until next year. As well, is there a coincidence why so many IPO's coming out? One might think so, but not this guy. As long as the company has a solid TECHnology business model, there is plenty of 401-k $$$'s to go around.
Secondly, we are going through a monumental shift in the realm of thinking by what drives the market. Technology. It not only drives the market, it rules how we function as a society. The days of soap and cigarettes driving the market are over. Many would rather sit behind a CRT and chat on AOL, then have a beer and a cigarette. Hence the change in the DOW and the S & P with Microsoft, Intel, and Yahoo respectively. People are finally waking up to what really is driving the market, and don't want to miss the next opportunity to find another MSFT in the making.
There is a ton of upside left IMO for certain sectors. Why? Everyday, I get pissed at my cable modem or phone connection due to old routers and switches. We have only scratched the surface with new public companies that provide routers and switches as well as DSL service providers, fibre channel companies for SAN networks, wireless communications, web hosting, B2B companies, ect.. The list goes on and on.
Will there be bumps in the road and consolidation? Sure, but IMO, the market will continue to move to the upside if technology is the driving force and earnings continue to surprise.
Hopefully one day, we can hand over stock certificates to our grandchildren, with the likes of QCOM, CMRC, RHAT, ect.
The wheel is being reinvented here, and everyone wants a piece before it passes them by. Happy trading. :-). |
