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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Psycho-Social who wrote (36281)	3/2/2002 8:23:00 PM
From: t2	Read Replies (2) \| Respond to of 99280

the Nasdaq is not the stock market, although it seemed it was for a time. It does seem that the sector rotation away from Info Tech/Nasdaq hasn't yet run its course, and the Nasdaq will continue to underperform for a month or more. That is my feeling as well. I have read a lot of comments that the Nasdaq will outperform the DOW going forward. Maybe that is a TA projection. I just don't see it that way. This market is unlike the late 1990s. Valuations did not matter at all back then. Over the past 2 years, they have started to matter more and more. I see the Dow outperforming simply because valuations matter a lot now....as the consequences of ignoring them is a fresh memory for a lot of people. We have seen value stocks get crushed between 1998 and 2000. One could see it in the individual stocks but the broad indices did not make it so obvious. Value managers would show up on CNBC and would be a big joke for the daytraders. This time around, it should be obvious since the Nasdaq represents only growth stocks. jmho btw--if both nasdaq and dow go higher, I would still expect the Dow to do better.