Institutions and the smart money out there has been owning a lot of these higher PE stocks, to participate in the good earnings, and they've been getting the good earnings. But the problem is that the stocks haven't been running up into those earnings. So they're not getting paid for that higher PE risk.
More Quotes from Andrew Barrett:
The fundamental picture is still strong. No one has said technology is dead.Andrew Barrett
It's going to take a turnaround in the earnings picture, ... I think the upside begins when we get our next rate cut.
Andrew Barrett
Right now there are just too many cross currents out there to make people feel confident enough and start buying on this value.
Andrew Barrett
I think that until we get further indication, probably in the next Fed meeting, of where the Fed is in terms of raising rates, that the market's going to stay in a range. After we get that, the fundamentals behind tech are so fantastic, that it's going to yield some support for the second half of the year.
Andrew Barrett
We need to get a lot more maturity in that space, and right now the Web infrastructure players have more sustainable, more realistic business models, and that's where investors are flocking to,
Andrew Barrett
The problems are really isolated to the consumer end of the PC market in Europe, and that's being reflected in Dell and Gateway, ... We downgraded Intel this morning, but the stock's fall has factored in most of the revenue shortfall.
Andrew Barrett
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