Oct 28, 2007

Doug Kass: Half of year-to-date runup in Nasdaq 100 due to Apple, Google, and RIMM

In support of his forebodings, [Doug Kass, the redoubtable bear who runs Seabreeze Partners] cites the Nasdaq 100's spectacular performance so far this year -- last we checked, it had shot up a cool 25%, or some 448 points -- as a startling illustration of how a few exceptionally strong stocks can give the impression of a big bull move. Of that roughly 25%, or nearly 450 points, gained by the Nasdaq 100, a whopping 230 points, or over half the index's rise, has come from just three issues: Apple (135 points), Research In Motion (60 points) and Google (35 points).

No accident that each of that triumphant trio is part of the big, amorphous sector dubbed "tech". For according to that perceptive observer referred to a few paragraphs above, the torrent of dough exiting the financial shares, which for so many years ruled the investment roost but lately have been feeling the effects of the credit chill, has flowed in gobs into techs, which have been largely out of favor for quite a spell.

~ Alan Abelson, "Schizo Market," Barron's, October 29, 2007

No comments: