The New Economy and its Winners Message Board

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Strategies & Market Trends : The New Economy and its Winners

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To: Eric Wells who wrote (386)	5/22/2000 11:58:00 AM
From: Bill Harmond	Read Replies (1) of 57684

Eric, The "New Economy" is a sector discription, used commonly to include those companies on the vanguard of technological change. The term resulted from Wall Street's need to categorize the group of companies that pulled away from the pack in valuation during the past three years or so. The Industrial Revolution ushered in a "new economy" too. The economic rules still matter, as they always have. Risk still matters. I don't know how you conclude that anyone investing in new economy stocks is "blindly optimistic". A person doesn't need to be "blindly optimistic" and disregarding of risk to invest in high risk/high reward situations.

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