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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.22+1.8%Nov 28 9:30 AM EST
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To: Danny who wrote (109478)10/3/2000 8:37:49 PM
From: schrodingers_cat  Read Replies (2) of 164684
 
I think it's worth remembering two things. First, the US economy is still in good shape, and the world economy as strong as it has been in years. Second, the tech story is still pretty much intact, with many fast growing and highly profitable companies being created.

Of course there are some clouds on the horizon. Strong world growth has produced an unexpected surge in demand for oil and hence high prices. However the US economy is much stronger than in previous oil shocks, and is less vulnerable to high oil prices, so as long as shortages don't get any worse things should be OK.

Also, telephone companies are hurting (overinvestment?) and may find it difficult to borrow the money they need to deploy new networks, hence some of the equipment stocks may fall to earth soon. There is also a slow return to reality in the dot-com area and signs of a shift away from PCs. OTOH some companies are doing very well. I think that there are going to be changes among the leaders in the tech sector, but not a rout in the sector as a whole. It's worth remembering that we've just been hearing the bad stories in Sept, the good stories won't start coming out until earnings.

None of these troubles justify the slide in the markets since late August IMO. It's really just an emotional roller-coaster together with the market following its normal seasonal pattern. As long as the "healthy economy" and "new technology" stories are still in place, hopefully we can look forward to better days in Nov and Dec.
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