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Article: Don't say "new economy" Economics focus; Who said "new economy"?(Wall Street fears that America's economic slowdown may turn vicious. So, apparently, does Alan Greenspan, who cut interest rates unexpectedly this week. Is it all over for the new economy?)(Finance and Economics)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- January 6, 2001
CopyrightCOPYRIGHT 2001 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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AS REVERSALS in market psychology go, this ranks among the most spectacular in decades. Only yesterday, or so it seems, Wall Street equity analysts almost unanimously acclaimed a new economic paradigm. Out with those old equity-valuation models, out with fusty concerns about earnings (actual or predicted), out with the business cycle; in with network effects, burn rates and global scale. Forget, ugh, prudence: caution is the new recklessness. Nowadays, as one representative member of the breed then put it, the only danger is to be out of the market.
Well, for that shrewd advice (as Nasdaq tottered at around 5,000), many thanks. For all those "buy", "hold" and ...