Next Wave Will Wash Out Amazon
-- January 24, 2003
Amazon isn't the only Internet or tech stock that is doing a bit better and struggling to sustain a recovery. But does this mean it's time to invest in some cheap Nasdaq companies? Not yet!
In the next phase of the bear market, their biggest customers -- large blue chips like Kodak, AT&T; and DuPont -- are going to be hit hard, dragging down the sales of virtually every tech sector -- PCs, wireless equipment, dot-coms.
Prognosis: The Nasdaq may no longer be in the vanguard of the bear market like it was in 2000-2002, but if the Dow plunges, the Nasdaq will surely get pulled down as well. Invest in Nasdaq stocks only if your goal is to "lose less money than in Dow stocks." Not exactly a good investment strategy!
related article: Amazon.com Reports Second Profit Ever