No. of Recommendations: 0
Here are my thoughts, if you are interested.

It appears to me that the worm has turned for high tech stocks. Now that CSCO earnings were dissapointing, and future guidance was down, it seems that wall street finally understands that the economy is indeed weak. IMHO, I can't see very many upside earnings surprises for NASDAQ stocks in the next 3-6 months. In fact, I think many companies will have some severely negative earnings surprises. As of right now, I believe that the NASDAQ could fall to below 2000 (possibly as low as 1500) in the Sept-Nov 2001 time frame, before the raging bull returns (and it will return with a vengeance). Keep in mind that the NASDAQ average PE ratio is still around 100, which may be okay when revenues and earnings are growing 50-100% a year, but when they're not, a 50 PE Ratio would be considered high.

The DOW will also suffer short term, but not as much, as I see it dropping to the 9000 range in the Sept-Nov time frame. Both should have a nice bounce in the 4th quarter, and finish close to current levels for the year (Dow around 10,500, NASDAQ around 2500-2800).

Well, there you have my current predictions. Guess we'll see how close I am.

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