Watch out technology stocks – another bubble just formed ready to burst
Specia Correspondent
Jan. 9, 2007

The bubble formation it seems is the function of a lot of money in the hands of less that super smart people. It is happening more often than any time before. The reason is clear. They do not know what to do all that tax cut money. Well, they created another one in spite the market telling them not to do so.

When you find a bag of money all on a sudden, you have a tendency to squander the same. Wall Street is now chasing the tech sector again!

The technology stock bubble is real. The prices edged up little but the fundamentals collapsed. A bubble can be created in two ways. First, the prices just balloon. The second, the prices say the same but fundamental collapse.

The tech sector could innovate “nothing” other than YouTube, iPod andso and so on. No fundamental innovation in science have taken place. What happened since 1970-2006 is called business innovation. They used the same technology to create new products and make money. Internet, Laser, HDTV, wireless technology – nothing is real breakthrough. They could not even find a way to use alternative fuel. The technology is stagnant. The developing countries like India these days graduate engineer to “effectively” answer phone call – the call centers!

Technology stocks will collapse more severally that 2000-2001 cycle. The artificial liquidity created a floating cushion for these stocks. The PE of this group will literally collapse.

Watch out technology stocks – another bubble just formed ready to burst
Specia Correspondent
Technology stocks will collapse more severally that 2000-2001 cycle. The artificial liquidity created a floating cushion for these stocks. The PE of this group will literally collapse.
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