Momentum investing has become more and more in vogue. When certain stocks start to move, there's a tendency toward massive concentration.
We've already let tremendous air out of these tech stocks. The prices on some of these tech stocks are looking very attractive.
People feel the growth is there whether you push rates up to 6.50 percent or 6.80 percent.
To a certain extent, the demands on productivity are so strong and the pace of innovation is so great. There is tremendous pressure and need to spend money on the business infrastructure to continue to maintain and improve productivity.
Stocks are not reacting to good (earnings) news. Next week begins the real flood of what should be very closely watched reports. If the good earnings news is not able to buoy the market, it's because of interest rate concerns.
It comes down to rate fears. The Fed is going to have to get pretty aggressive. We're quite worried about the interest rate outlook.
If you want to play this market it's hard to resist technology. The lure is tremendous, so it becomes self-perpetuating.
The Nasdaq has at least the Microsoft report to look forward to, which should be strong.
I think the Nasdaq was facing a lot of profit taking already. Certainly on the Nasdaq today, the Microsoft issue is hitting stocks in general.
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