Money
Issue No. 2 - September/October 2001
technology: where to from here?
by Tony Catt
Many investors around the globe are still licking their wounds after the recent technology fall out on investment markets. The ‘internet revolution’ that gripped the and promised extraordinary profits last year has evaporated and the technology industry has been caught in a world wide slow down in economic growth and lower capital expenditure.
Investors are now counting the cost of over enthusiasm towards this sector and inflated expectations of future revenue and profits. Many now ask the valid question ‘ where to from here?’.
A wise man once told me that stock prices have a tendency to rise higher for longer than anyone ever expects and that was particularly true at the beginning of 2000 when technology stocks around the globe seemed to have no limits. However, the same can be applied in reverse and I believe that is currently what we are experiencing. Looking behind the perceived ‘bombed out’ share prices of many technology companies,...



