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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (48602)	3/12/2002 7:38:58 PM
From: Sully-	Read Replies (1) \| Respond to of 65232

Updated: 13-Mar-02 General Commentary Tuesday's action was a perfect example of how the improving economic tone will insulate the sector (relatively speaking) from bad earnings-related news... Imagine if you will how poorly the sector would have performed a few weeks back if it had been hit by bad news from Lucent (LU), Nokia (NOK) and Worldcom (WCOM) all on the same day! We're pretty sure it would have been a lot worse than yesterday's 32 point, 1.7%, decline. Aside from recognizing the sector/market's new found resilience to negative corporate news, Briefing.com also thinks its important to note that most of the bad news is coming from the telecom group -- the sector we labeled the "third rail of technology" a few weeks back... While stocks in this area are likely to attract some early bargain hunting, and will occasionally benefit from some short-covering, the actual fundamental rebound for telecoms remains further off than for most tech industries... Consequently, traders considering investment in telecoms should account for a higher degree of risk/volatility. As the economic recovery builds, and business investment finally starts to turn higher, the outlook for the telecom (and networking) groups will improve considerably... In the meantime, the "safer" tech plays remain chip, hardware and software. Robert Walberg