Michelle,
This is a very unusual sell-off. It is happening without damage to the dow stocks or the rest of the market or small stocks. So we have not seen this before.
There were two other severe drops in the nets earlier this year. In Jan/Feb, and Mid March. But they were accompanied by the rest of the market.
Of course they all recovered and went on to new highs. This time it is internet specific. So I think for the non-leaders it will take a long time to recover. Because money is leaving the sector, not to raise cash, but to buy Case, Deere, Alcoa, Phelps Dodge, etc.... For that reason, I think some internets will not recover.
Amazon, Yahoo, Aol, Ebay, CMGI have gone up and down many times. the rest we have no experience with them. But the severity of the drop today, and the light volume, suggests at least a partial recovery. |
