Amazon has perhaps the best franchise in the sector and they are having trouble meeting revenues estimates ... and that hurts the entire tech sector. |
Anybody with a long horizon has to be in the Internet one way or the other. The one they would pick which I would reiterate is America Online ( AOL ). It is a real company, It has real earnings, it sure ain't cheap, but I think that 21 million subscribers will pay off down the road. |
Boeing is a turnaround. They've taken care of a lot of glitches and now both the commercial and defense area is looking awfully good. Nortel is just knocking them dead in both wireless and fiber optics. They are both very important areas. And all three companies represent leaders in their particular industries. |
Both the economy and profits are going to turn. |
I think the market is struggling from the Enron affair. |
I think there's a feeling that the Fed's actions are going to work. So it's not if, it's when. |
I think we are in a correction that was way overdue. There has been tremendous complacency by strategists about the Asia problem and even up until last week everyone was raising their targets. The Asia problem is real. |
If you are a competitive investor, you've got to assume the Fed will succeed in re-igniting the economy. |
More and more strategists are of the opinion that the Fed may be completely through. |
The bottoming process is going to take an awfully long time. There's been absolute decimation for many, many stocks, and there are many nervous shorts out there so you don't need much to spark a fairly vigorous move. |
There are these little bursts of good news in the tech area. |
This is a very anemic recovery. It has a lot of problems with it, and we don't have dirt-cheap valuations. I firmly believe the bear market is over, but this is not going to be a roaring bull market, and I think we're going to see a lot of interruptions and halting and starting before we get a consistently better market. |
We are finally starting to come to those stocks that haven't given up ground yet. This is the first time that these stocks that are priced for perfection have shown some imperfections. |
We are in a healing process which will take a couple of months. |
We're not going to see a significant upside until we get a clearer sense of how companies make their money and how it is accounted for. |