< As long as the quality stocks continue to drop>
I find most of the quality stocks still going higher: GE, MCD (new high), UTX, etc.
A correction is in order (i think your bear-market scenario is not immediate.
i also would have liked to see a continuing correction after last Monday, but internet trash stocks are -if you are keeping a close eye- are already getting trashed. Regarding KTEL, what do you expect with a stock of float of 800K. There are thousands of schools of thoughts regarding proper valuation of stocks about to embark on a new frontier, namely electronic commerce. Amazon.com is the first truly electronic-commerce company. Yahoo has a tremendous brand name. I personally don't think Yahoo will be as volatile as other internet stocks come correction or bear market. but there really is something revolutionary happening these days in technology. And look at biotechnology. some of the companies over there, like Incyte Pharmaceuticals and Affymetrix could start a bull run in that sector after two or three years. Do you know how many products are coming into the market from that sector within a couple of years?
And what about internet telephony? People who think IP phone is hype should really start looking at companies like IDT, OzeMail, Concentric. Is the market going to compress its valuation if the IP-phone promise becomes realized? i don't think so.
Even if there is a bear market, that one will be a devised one, attracting reluctant investors out of stocks into some bear-market like investments like bonds. It will be a short one, created by the shorts for the shorts.
One of my favorite stocks, PeopleSoft PSFT, has rarely traded below PE of 100. I just can't see PSFT going to 10 from 45 'because there is a bear market'. ITWO has rarely traded below PE of 200, yes 200. What about a stock like Rambus, which barely started to make profit, but has TREMENDOUS POTENTIAL. Show me one phase in history where a bear market happened in this kind of circumstances, ie, where truly revolutionary technogical changes are taking place. don't bring the '73-'74 comparison. i was monitoring the market then and the difference between then and now is like night and day. |
