Wall Street Journal analysis
If you're in IMRS or considering investing be sure to read The Wall Street Journal's "Abreast of the Market" column this morning. Here's some excerpts:
Most of the stock market is licking its wounds, after slides like Friday's. But despite taking their own hits Friday, the Nasdaq Stock Market and small stocks are doing fine, thank you.
Of the stocks in the Standard & Poor's 500-stock index, three-quarters, or 379, are down for the year. Investors are pulling money out of the big Dow industrial and S&P stocks and moving it toward favored Nasdaq technology stocks whose earnings prospects, they think, are strong enough to propel them through any spate of higher rates.
But what is different this time is that the money isn't simply moving into the renowned tech behemoths -- the Microsofts, the Dell Computers or even the Qualcomms. Those suddenly are behaving a lot like the stodgier old-economy names. The Nasdaq resilience is coming, to mangle an old saw of real-estate investing, from rotation, rotation and rotation. What really is going on is that the big, soaring tech stocks couldn't go on soaring forever. At some point, they had to come to earth.
The rotation has moved the Nasdaq market leaders from the big tech stocks, to Internet commerce stocks, to business-to-business Internet stocks… |
