Keith:
Basically I agree with Ram. What we saw yesterday was what appeared to be "last minute" selling. Up until yesterday, my teleco stocks (AFCI & TKLC) had held up rather well all week . . . until yesterday. So why yesterday? Well, my only conclusion was to book profits for the Q. I think last week's picture will change beginning Monday.
I guess the inevitable had to happen in one form or another. After having an unbelievable 200% ROI on my portfolio last year, this year's ROI was already up 30% going into March. These kind of returns CANNOT be sustained on a continuous basis. Eventually, someone is gonna want to take profits, particularly the guys who get measured or evaluated on a quarterly basis.
Tech hasn't changed a bit, IMHO, although this latest wringing, should take some of the more speculative nature out of the market. Sorta like a little kid burning his hand on the stove, after playing with it for several months. More caution will be the rule going forward for the more prudent investor. I like to think I invest in the "lower risk" end of the high-tech sector, so, in a way, I'm looking forward to seeing some of my not-so-beaten down holdings rebound, but with stronger legs going forward. I put AFCI in that camp. |
