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Therefore the New Economy reacts on every twitch ant twitter and that makes it more volatile. It is nice if your stocks have price gains of 30% a day, but it can also be the other way round and you loose very much money. Many of the shareholders experienced that recently.
During the long boom many high – tech stocks notched up high price gains and therefore they were very attractive...
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But many investors did not notice that the New Economy was overvalued during the last few years. Now investors are paying the price and see their stocks nosedive.
As the consumer spending still is the linchpin of the economy and the drop in consumer spending the main cause of the economic slowdown, the main objective should be to boost consumption...
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