On Wednesday, U.S. Federal Reserve chairman Alan Greenspan decided to tell a U.S. House sub-committee what almost everybody already knows: Internet stocks are volatile.
“As you move closer and closer to retirement, you move to less and less risky assets,” Greenspan told a House sub-committee at a hearing about Social Security reform. “If you have everything in equities, if you have everything in Internet stocks, you’re in real trouble.”
A wire story noted that “stocks associated with the Internet and technology are volatile and have reached high levels recently, in part because of interest in Internet shopping.”
The stock market shrugged off Greenspan’s warning — and with good reason. The mega-deal between Dell (Nasdaq: DELL) and IBM (NYSE: IBM) that was announced on Thursday made it clear that there’s still a ton of money to be made in technology.