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To: Stuart T who wrote (44856)1/7/2001 8:21:49 PM
From: DlphcOracl  Respond to of 57584
 
Stuart T:

I am not sure if the Presidential Investment Cycle for Investments is operative (or as relative) when we are starting the year 2001 after a year in which the NASDAQ declined nearly 40%. One could argue that the old maxim: "Don't fight the Fed" is equally operative, and cuts both ways. If the Fed aggressively cuts rates in the first half of 2001, it is difficult to imagine the NASDAQ not ending this year significantly above current levels.

Your point about exercising caution is well taken, however.
If/when the NASDAQ does put in a bottom, it will not be a quick ride back up and will not resemble the "V-bottoms" we have all come to know and love. There will still be considerable volatility with many opportunities to re-enter the tech stocks.