>You are my favorite investor, HJ.
Compared to who?
>Good evening James,
This is your Money Mail for Thursday, March 30.
THE BUZZ AT THE BELL
The flight of money out of tech stocks continued for the
third straight day. The Nasdaq lost 186 points and the
Dow, though up most of the day, closed down by 38 points.
But experts are divided on why this is happening. Some
argue that the move out of techs is simply end-of-quarter
profit taking and the move into Old Economy stocks in
recent days is bargain hunting. According to this view,
the profit takers and the bargain hunters are not the same
people: It's merely a coincidence that they're acting at
the same time and, therefore, this is not a classic
rotation. If that's true, techs could bounce back as we
move into April. But other experts are betting that the
move out of techs is the beginning of a larger correction
that could result in a 20% drop from the recent high.
(We're about half of the way there already.)
Whichever it turns out to be, today's winning sectors look
like the U.S. economy circa 1960: consumer goods,
beverages, insurance, food and chemicals, to name a few. |
