The issue with technology is, it's -- by definition -- change. You can't just go to sleep and say I'm going to forget it for 20 years.
The market wants to go up, but there just isn't enough 'oomph' there.
Unfortunately, earnings growth expectations are still too high. We continue to learn about that.
Investors shouldn't run away from the techs. The long-term fundamentals for technology stocks are super. So the strategy is to work into the area.
I think this could go on for another year or more. There is no short-term resolution of the major issues in sight.
It feels uncomfortable. It is uneasy. We're not used to this situation in the market. But, after all, this is the much-awaited correction that many people have been looking for in recent years.
Clearly today the catalyst was the better-than-expected productivity report. All that feeds into the techs.
All those people who were waxing so bullish early in the year are now finding out the reality, that growth is slowing.
The market continues to be uncertain about the underlying leadership after many years of being used to the big-cap stocks leading. We're also somewhat nervous about the earnings.
I expect the key is the Fed continues to tighten credit as we go forward. What this is going to mean for the profit picture is more critical for stocks.
