A Wiser Bull?

High-tech frenzy or no, the market could enter a stronger phase

Even for a bull market that's used to surprise and shock, this was a wild turn. In less time than you can say "Internet," investors jettisoned the glamorous hot-growth issues--everything from telecom equipment to pharmaceuticals--and put their money into gritty industrial shares. They even started to snuggle up to long-shunned small-cap stocks. The Dow Jones industrial average, with its heavy complement of smokestack stocks, has added nearly 800 points, or 8%, since Mar. 31 and closed at a record 10,581 on Apr. 21. The Russell 2000, a small-cap stock index, gained 7.3%, while the tech-dominated NASDAQ Composite Index was up a puny 1.1% for the period.

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