Fortune Investor Data
NEW YORK: "Bubbles don't die easily," says TIME Wall Street columnist Daniel Kadlec ruefully, as the tech sector continued Thursday to confound its most bearish observers. After 10 days in the dumps -- 10 days that some analysts believed were just the beginning -- the NASDAQ is riding high again. Thank a stellar earnings report from bellwether IBM, and a sentiment that Kadlec thinks is becoming a matter of blind faith: Tech stocks are the place to be.
"We'd been waiting for this for so long, and it looked as if this was going to be the real thing," Kadlec says of the short-lived correction. Attention was being turned from inflated Net stocks to recent underperformers such as oil and steel, which were supposed to get a boost from an Asian recovery. Sense and traditional valuations were returning to investing. "But it's a testament to how emotional people are about the Net stocks," says Kadlec, "that everyone jumped back in. And because enough people did, they were right. It's self-fulfilling." Thursday's run-up lifted the NASDAQ back near 1999's record highs, and left bearish analysts feeling like Cassandra all over again.