Time 2 buy We got another web 2.0 internet boom. 1997 all over again. The new era is upon us of perpetual inovasion, growth, upside, and consumerism, spendim, smartism, paymentism, and materialism. We need to spend more and more free trade. Need to vote in 2008 elections. Need to get college degree to make more money in global fortune 500 company to make more money so I can be a better global consumer. huuuge spending overseas and global growth. Massive consumer spending overseas. Massive credit card usage. Nov Dec rally coming. no one cares about citi ..bfffft bad citi news=future rate cut. Fed will keep cutting rates to move economy forward time to buy this dip i'm totally serial
I understand what you're saying. It's true that these techs weren't around during the first half of the 1900s, but some of it stands to logic. Small caps always weaken first because people move to the relative safety of large caps. Before techs that meant tobacco and other consumer staples. Now we have tech stocks that have the ability to grow faster and sustain growth longer. Many people are now moving to large cap techs instead of traditional defensive large caps. It has more to do with the factors causing a market slowdown.
Think I might have sold my TWM a lttle early then.... Nasdaq is really strong today compared to the Russel. NDX should be off about 35 points when comparing it to the russel which is off 22 points now. Will go long the Russel under 775.
The reason why there has ben a huuuge fleet to quality large cap tech, comodity and manufacturing stocks is because those stocks are benefiting the most from the rampant rise in globalization since 2005. why sell to a couple million Americans when you can sell to billions wordwide? This trend will continue for a long long time. Smallcaps are crap and garbage. Avoid smallcap unless you enjoy subpar returns.
Dude, have you ever taken an economics/finance class before? Look at companies like Dupont. Huge companies benefit the most in revenue terms from globalization, but least in terms of ROI and stock growth. People have been pumping money into small caps for the last 5 years. As of July of this year RUT was up 120% compared to: DOW +60% SPX +70% NDX +100% Since that little scare, RUT is down a bit while NDX is up >10%. People are obviously expecting a slowdown. When the market expects growth the best investment is small caps. When it expects either a pause or a drop, the best investment is large caps.
Didn't you just post yesterday that it was 100% guaranteed that the Fed would cut another .25 points and that the Dow would be trading at 15,000 by mid-December?
200 to 300 point sell off today followed by selloff tomorrow morning. then a modest rally into the afternoon. followed by and upward trend next week. it just some profit taking before the market rallies again to all time highs within a month