The Numbers Tell the Story
Since reaching a peak on June 11th, 2009, the market has retreated and is trying to gain a new footing and a sense of direction based on 2Q2009 earnings. The question is no longer one of whether or not there is a gap between tech stocks valuation and end-market demand. Even for an uninitiated observer it is now clear that the rally was running on vapor such as an annual pilgrimage to the "Gods of the 2nd Half" and the "Gods of Less Bad". Bottom line is that the tech economy is contracting in 2009 and that few companies will show any real growth but will largely“ manage Street expectations” until the comparisons get easier in 4Q2009.