I don't see that there's a tough line to draw here, really.
Remember that Murphy is a GARP investor that happens to focus on hi-tech and medical-tech companies. There's nothing inconsistent in that. This isn't to deny that the internet is incredibly important and revolutionary, and indeed many of the companies Murphy follows and recommends have tie-ins, in important ways, to the net. However, a lot of the companies that are "internet related" like AMZN are not tech companies. Heck, most of the "e-tailers" are merely gussied up retailers that happen to use technology. There really is a lot of weirdness going on where anything remotely connected with the internet in any capacity is considered a technology company. How silly. This is in part due to ignorance which is then exploited by savvy, and not so savvy (but for the short term lucky), traders. Even so, I'm not shorting any of them unless it's for other reasons. I learned my leson with YHOO a couple YEARS ago!
In brief, there's no rational reason that makes it necessary that tech stocks and internuts trade in lock-step. There's a huge difference between them, IMO, however as has been noted a billion times, this market is not trading on rational but sentiment, so, Hey, go with the flow.
Anaxagoras |
