Your investments and the economy.(Business)

0 Comments | Daily Herald (Arlington Heights, IL), May, 2007

Byline: Michael Sean Comerford mcomerford@@dailyherald.com Why is the S&P near a record and the Nasdaq still struggling? "For one thing, you have a heavy presence of tech on the Nasdaq versus the (Standard & Poor's 500 index). Tech was more overvalued and fell harder, so it is taking that sector considerable time to come back." Is the tech sector coming back? "The tech sector is coming back.

It just had so much further to go than others. Part of what caused tech to bubble was the Y2K scare. You had all this equipment being replaced at the turn of the century. ... When you have all new computers you don't need more for years. And just when it came time to replace a lot of capital equipment, the economy began to soften ... It's going to take a while...