What a week! The government revised fourth-quarter GDP growth to an
astonishing annual rate of 7.3 percent. Goldman Sachs' guru Abby Joseph Cohen
took a little money off the stock market table. New home sales soared
despite higher mortgage rates. The Microsoft settlement talks collapsed,
thanks to greedy state attorneys-general. The Nasdaq corrected (again),
knocking its year-to-date gain down to a measly 9.6 percent.
Is this the beginning of the end for the high-flying tech stocks? Who
knows? You're a long-term investor, remember. The only way for individual
investors to respond to this whipsaw market is to stand back. And remind
yourself that this is exactly the kind of week that you diversified your
portfolio for. Some of those Old Economy stocks can pop up 4 or 5 percent
in one
day, too!