Enron's deep inner meaning: The world's biggest bankruptcy teaches some very old lessons

RMA Journal, The, March, 2002 by Thomas K. Brown

7. The technology sector will again generate murderous returns for investors. Tech stocks won't just underperform this year--they'll get scalded. Why? Because the recession taught investors an unpleasant lesson about the nature of demand growth in the tech sector. Tech industry growth isn't infinite and open-ended, the way the people used to think.

Rather, it's merely very high, and is--uh-oh--extremely cyclical. Once investors fully absorb that awful truth, they'll see tech companies for what they are: gussied-up machine tool makers. And they'll value the stocks accordingly.