Plenty of pundits have compared the trading action in today’s market to the bursting of the dot-com bubble, but the latest Wall Street type to make that connection isn’t your typical broken-clock bear.
‘We’re at a point in the technology cycle where investors are starting to become pure momentum investors. You have this notion where people believe that tech is no longer cyclical. It’s something new. It’s something different. And, that’s sounding a bit like March 2000.’ Richard Bernstein He ought to know a thing or two about March 2000.
“As profits decelerate, which most people are in agreement is going to happen this year, tech is generally one of the worst performing sectors,” the former Merrill Lynch chief investment strategist said. “Whenever profits decelerate, the most important factor in a portfolio is quality and stability.” Not much of a bursting going on Thursday afternoon, with the Dow Jones Industrial Average DJIA, +0.03% , S&P 500 index SPX, -0.09% and Nasdaq COMP, -0.