Investors wake up to new challenges of tech stocks

 

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Many investors got a rude wake-up call from lucrative dreams during the second quarter, as the bottom fell out of many stocks in the technology sector. IPOs for the most part dried up. Tech-heavy mutual funds were hit hard. Although many analysts now point to a "summer rally," will it last?

IPO market heads south for the spring In the second quarter there was only one type of initial public offering investors were interested in, according to analysts: ones that were profitable. Second quarter sinks all but two tech funds Individual investors whose portfolios took a hit in the second quarter might find some solace in the poor performance of the professionals. Market turmoil shakes world of dot-com investors update Experts say the second quarter may go down in history as the turning point in the "new economy"--the period in which market euphoria gave way to skepticism. previous coverage Genuity IPO misses big expectations update Genuity's initial public offering proved that bigger is not always better, and raised the ire of at least one institutional investor.