It's rare that I have to disagree with a rarebird.
"Richard, NOW MAY BE A GOLDEN OPPORTUNITY TO LOAD UP ON TECH STOCKS due to the unlikelihood of NASDAQ falling below 3500....ESPECIALLY AFTER THE RECENT BEATING...."
Are you basing that on Greenspan or the PPT saving the day? R, I hope your not basing it on fundamentals because today's NASDAQ has the distinction of having, on average, the worst issues, the with worst fundamentals and highest valuations of a major exchange in American history.
Here's the critical point everyone seems to miss (though I don't know why): good for progress and for the consumer is NOT the same as good for stocks. Technologies that tear down barriers to competition are a disaster for wall street. Today really is different from, say, the 20's (but in a bearish way!) in that once upon a time, in the industrial age, the lucky few who first grabbed the limited physical means of producing goods and services could make a fortune far into the future. Remember: even if you're paying a PE 15 for a stock (ultrconservative by NASDAQ standards) you still have to count on at least 5-10 years of consistent, sustained profitability to make money. I can practically count on both hands the number of NASDAQ issues that seem secure over that time frame.
No siree. If anything is keeping this market alive its the PPT, and the extreme volatility we will see over the next five weeks is just what you get when an irresistible market force meets an immovable PPT object. |
