Many investors who had been attracted to stocks by the sharp run-ups and reliable and speedy recoveries of the last several years have become disillusioned and have been pulling out. Those hanging on have been tilting toward more defensive issues and accelerating their tax selling. As the market's momentum has reversed to the downside, however, analysts not surprisingly have been quicker to identify flaws in companies' results and to lower stock rankings and price targets, further dampening sentiment. At this point, we believe it would be a mistake to sell. The rolling correction seems to have pretty much completed its round of the major market indexes, sectors, groups and niches, with much of the stock that had been in weak hands having already been shaken loose.
Valuations are now reasonable and expectations far more restrained.
We're not too worried by the new low on Nasdaq last Friday. We see an irregular recovery developing in the near term. Net returns may be modest for a while. Bid on or offer business services Web design, logo design, computer consulting, and more. Business Week Online may receive a share of any fees you pay for services.