Excellent charts, Paul! I think it explains how the market has finally grown through the excessive valuations that we reached back in 1999. I remember shivering about how we were going to get through a whole decade with no upside back in 2000. Once the correction started, nothing could stop the negative momentum. Product cycles were tapped out and could not deliver new product cycles since there was no content. iTunes has taken care of that by filling all kinds of computers with music, photos, and video. Now, there is a real demand for tech, storage, and content now that people have high speed, 2GB RAM, and all sorts of great application.
Now, it's almost like we are back to the bull market that was shut down in 2000. I'm also getting close to the best valuations in years with one exception, portfolio diversification. Back in 1999, I was 90% long Qualcomm when the market topped out as the stock finished the rally from $55 to $2000. Now, it's pretty strict asset allocation with concentrations in the market leaders in each industry.
I'm looking forward to the 4 to 5 year positive outlook you mentioned the other day. Let's do a repeat of 1997 to 2000 and I'll be quite happy:) |
