Why did investors dump technology stocks?
Investors sold some of the best performers in their portfolios, including technology stocks. But they sold other blue chips as well, market stalwarts like drug companies, consumer products like Coca-Cola. These are usually considered “the family jewels, the last to jettison before the enemy hits the door. Many were hoping to cut their losses and recoup as much of their investment as they can, then ride out the storm. Q: What do analysts think will happen now? A: Many analysts believe the market needs to be wrung out a bit more before it can begin to recover. A drop back to 6,800 to 7,000 in the Dow, which would represent a loss of up to 740 more points, is not unthinkable, said Barry Hyman, senior market analyst at Ehrenkrantz King Nussbaum. At this point, small investors should consider if they will lose too much by selling now, says Dick McCabe, a technical analyst at Merrill Lynch. Instead, said Barry Hyman, senior market analyst at Ehrenkrantz King Nussbaum, they should wait out th
