But at then end of the day investors are also focusing on company specific things such as growth and the scale of the business. It is also a reflection of company fundamentals and a leaning towards new economy names, which represent high growth and so have high multiples on earnings and revenue. This air out the new economy bubble is healthy. There are now companies in the old economy that represent terrific value. Cash flow is not dead.
Cash flow is still a good thing.
And the value inherent in companies that produce consistent cash and grow their earnings is very powerful. But with the new economy names, there is now a healthy differentiation between those that are going to be number one or two and the others. That s a good question. Some people point to stabilization in interest rates. It is also important to see retail investors keeping their money in the stock market.