For the Record: Paul H. Wick

The runup is overdone

Wick runs the $6 million Seligman Communications & Information Fund, which is up 0.9% through Dec. 14


In prior downturns, particularly in technology stocks, whenever business has bottomed out, it has been an opportune time to jump back in. But things haven't changed so much: The market runup is overdone. There will be a correction shortly, and it could be very severe.


People are closing their eyes and buying without regard to valuation. They haven't learned anything from the bubble. Broadcom Corp. (BRCM ) has gone from $150 to $40, but it's trading at 14.3 times revenues. Anytime you get above five or six times revenues, it starts getting risky--unless you have a bulletproof franchise, such as Microsoft Corp. (MSFT ) or IBM (IBM ). Investors have got to do the math.

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