Paul - |
I'm not holding heavy in net stocks right now, in fact I'm short a couple, but I will be buying as I see signs of the turn. Nothing new in your comments that the market is a virtual reality -- the market is an emotional thing, and always has been.
Let's back way away from all the short term Interest rate / bond market gobblity gook, to once again realize that fundamentally, there is so much money in the markets as the Boomers gear up for retirement and all of us re-invest our past winnings from this sustained bull market, that the growth in the stock market is not going to come to a screeching halt overnight. The huge amounts of money in the markets won't change much for several years...until Boomers start withdrawing en masse to pay for their retirements.
Unlike the earlier part of the century, these days, individuals are responsible for their own retirement portfolios. The combination of lots of choice, easy access (online trading) and the greed fueled temptation to gamble that has hooked many on placing part of their portfolio into high volatility stocks is an entirely different scenario from the 20's.
The net sector has cooled this month - as it did last Sept, but will heat up again when the momentum turns. The fact that we've seen such dramatic correction proves your point - that the greater fool theory at some point kicks in...but I submit that the greater greed theory will just as assuredly reverse it as more record breaking topline growth numbers are released in July and subsequent quarters. I'm in the web site/software business and I see every day how the New web Economy is dramatically changing how companies do business - for the better. The solid businesses and major brands in this sector are not going to evaporate.
I called attention to the recent Texas study because it is one more well respected source that shows that the rapid growth of the internet industry sector is absolutely without precedent. If that does not interest you as you contemplate if/when/how you might invest in this sector, well, that's OK. Like most others on this site, I attempt to contribute accredited information mixed with how I interpret and intend to act on that information.
If you indeed, as you say, have no interest in owning these stocks, then you are visiting this site for other reasons. Share them with us and we may all learn something new.