Im still not convinced it was
panic, more an orderly retreat.
Lets face it we all know how overvalued the
tech stocks have become.
There was a slight recovery from the
lows at the end of the day so there
were a few brave (silly) buyers around, and the
market wasnt in complete freefall.
The
volatility the last week or two has been becoming more and more
extreme. The market is 25% down
from its highs but has taken a week to
fall so far. Anyone wanting to exit has had
plenty of opportunity.
What was
worrying about friday was the extent which the dow joined in,
although this was i suspect more to do with the
inflation figure and would of happened
with or without the nasdaq.
The fact
it happened on a friday is good as it gives nervous investors
a chance to calm down. The retreat in the
nasdaq will probably continue for a while
although i expect the retreat to slow and be
more selective. ie bad stocks will be
hammered but the good ones will stabalise.
In new
zealand i suspect that by friday we will all be wondering what the
fuss
was about.
nick
See IRG research reports
