Bravo Leland!
Satisfying snap-back today. Finished off the high on
intra-day profit taking.
I will not join the party's over crowd. We are in a
flight to quality. People are dumping tech companies with all
hype and no results or market leadership. Many fringe co.s
are history, the tech market is shaking out, but this is
the key to the various disasters:
In the flight to quality, investors are realizing that the
big traditional names are in just as precarious position
as an overhyped internet stock, just for different reasons.
The latter have no investment substance, while the
former are unresponsive to events which are
overtaking them. They end up blaming "a slowdown in
Germany" "inventory correction" etc. for weak results.
Fighting the last war, they can't do what Gates has done.
The awareness that HWP, IBM, DEC, etc. are in decline
is fundamentally disturbing to investors searching for
quality. It seems there is nowhere to hide. Confused,
they also sell "overhyped momentum stocks"
lumping Iomega, a fringe player that got
lucky, with Ascend and Netscape, examples of the new
leadership. The technology market continues to grow at a
fabulous rate, we happen to be in a changing of the guard.
Matthew |
