|
COPYRIGHT 2001 Crain Communications, Inc.
NEW YORK--The worst is just behind or dead ahead for technology stocks, depending on whether you believe the bull or the bear who shared the dais at the New York Society of Security Analysts' "Internet Economy Conference."
Federal Reserve Board Chairman Alan Greenspan has become more villain than hero in the view of Richard Bernstein, chief quantitative analyst for Merrill Lynch & Co. Misplaced reliance on the Fed to limit downside potential for share prices caused a "liquidity bubble" during the past two years, and the potential exists for a repeat performance, he said.
"The tech bubble was more than a set of over-valued companies. It was created by the artificially low cost of capital that lowered barriers to entry and resulted in over-capacity. Deals done in 2000 were termed 'pre-revenue', which means there's nothing there," Bernstein said.
"If you want a Nasdaq 3000, there will be more over-capacity and more companies on life support. Look at telecom companies and how much they want to raise;...
Read the full article for free courtesy of your local library.
|
Bookmark this article
Print this article
Link to this article
Email this article
Digg It!
Add to del.icio.us
RSS
