Bursting the Oil Bubble: Rotation from XOM, BP, RD, PFE back into Techs: CSCO INTC PALM AAPL etc. When you look at the Hundred Billion Dollar Club market capitalization, you clearly see this short term move into oil stocks and drug stocks, "Parking" the money.
This is anti-growth sentiment. The "Oil Bubble" will burst as soon as there is a peace negotiations in the Middle East, and as soon as the Saudi and other OPEC oil spigots get processed at our refineries into gas and heating oil. Whoever is holding oil stocks then will lose their value within minutes of such "good news" and wish they had never left the investments in the real growth economy, which is growing unabated by the likes of greenspamism interest rates, and which will soon be reflected in rising stock prices upon the earnings season releases from now through CSCO in early November. Subject 37072
The market today has ignored tech stocks, the money was rotated into the oil stocks and drug stocks, and looking at all the failed FDA Trial 3 drugs, the pharmaceuticals are the real roulette wheel, there is going to be a lot of hurt for those who leave their money there, rather than in building the new high productivity high tech infrastructure, like CSCO, even INTC and the rest, like wireless, like PALM etc.
or even software upgrade companies. Just look at the Navy record high contract awarded to EDS. Capital rich companies will dump some profit margins into tech the last Quarter, at least in December for the tax deduction, lest Washington just wastes the revenue again.
I am,
Truly your$,
-Crystal Ball |
