The five interest rate increases we have already had don't seem to be cooling off the economy quickly enough to keep inflation in check. We feel that the real story over the last two weeks has been 1st Quarter earnings released by technology companies. Technology companies, primarily fueled by the growth of the Internet, have been outpacing the estimates of the most aggressive analysts. The demand for technology is the most prolific it has been in history. Even though capital has been rotating into old economy stocks for the last two months, money will find its way back to growth.
Biotech stocks seem to have put in a good bottom, and they are beginning to bounce.
Small and microcap stocks have not begun to show any signs of life, but it's not far off. Now is the time for investors to look at small companies. This market pull back has created some exciting, low risk entry levels for investors that are not intimidated by market volatility and can invest with discipline. We got extremely favorable feedback on last weekend's edition. That is the first question we asked.