Monday, October 19, 2009

The break between the DOW and Telecom Stocks


I've been buying and selling in the stock market since I was a kid. First stock was DIS.

Can someone who knows about telecom stocks tell me why there has been a break (one of the first disconnects that I can see) between the DOW 30 and Telecom stock prices?

The DOW just got back to 10,000 last week. Normally (last 20 years or so) there is a relationship between telecom stocks (T, VZ) and the DOW 30. The DOW has outpaced telecom by a factor of 2 - recently (last 5 years) - but the telecoms always follow (or lead) the DOW in gains and losses.

Telecom stocks have headed south.... a distinct break from the DOW 30 - something that hasn't happened in the past. Do we really think that the cell/wireless/pda event is over?

Why.. why...why?

I think that there is an opportunity here. Just like Cramer, I say - let's take our 6.4% dividend and wait for the correction.




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