Dale,
The biggest concern right now is 1998 earning growth. In this environment, what stocks would you rather own:
KO, 3 year annualized earnings growth 17.1%, PE 39 GE, 3 year annualized earnings growth 19%, PE 30.6 CSCO, 3 year annualized earnings growth 48.1%, PE 30.8 INTC, 3 year annualized earnings growth 31%, PE 17
After the tech panic subsides, the money managers will realize that if they have to be in stocks in a dangerous earnings situation, the best place to be is the sector that has been leading both GDP and earnings growth over the last 3-5 years.
John |