Even the formerly moribund technology sector is reviving, with the Nasdaq showing a 26 percent return since January.
According to recent reports, much of this renewed vigor is driven by individual investors. Is this a rational response to undervalued technology stocks, or the start of another bubble?
the market is still susceptible to irrational exuberance on the part of small investors.
Unfortunately, it is reportedly the most speculative stocks - biotech, Chinese Internet and penny stocks - that are showing the biggest price surges, and most of the interest appears to come from individuals. Analysts, whose views might be more representative of institutional investors, appear to be sitting on the sidelines.
If this pattern persists, it does not bode well for the current technology recovery.
Sigh... I thought we'd done the technology bubble already....