Stock Hype Made Some Forget the Fundamentals

Your stories on the crash of the overvalued Nasdaq market serves once again to remind us that the fundamental things still apply as time goes by [“An Unhappy Anniversary,” March 4].

Trendy catch phrases such as “new economy,” spouted by black-dressing yuppies and Gen-Xers, are no substitute for corporate profits earned by companies that provide necessary items.

The arguable amusement value of ordering widely available household goods over the Net--assuming one’s computer modem can find the host and doesn’t terminate in mid-order as mine does--never justified the exorbitant stock values placed on many tech companies whose only financial achievement was that they lost of millions of dollars per month.

As a longtime apartment investor, I did love your quoting the former stock investor who is now buying apartment buildings instead. Investment real estate will never lose 90% of all of its value as have so many tech stocks.

Of course, as your story also notes, Wall Street makes its money selling stocks, so you can be sure your “investment advisor” will never suggest you diversify your investment into rental real estate.

Now, if I had only backed up my opinion last year by selling short the silly Internet stock my “yuppiest” friend recommended, right before that stock went down by 93%.

MICHAEL YUSKIS

Newport Beach

*

Business welcomes your letters. Write to: Letters to the Business Editor, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012. Submit e-mail letters to bizletters@latimes.com. Please keep letters brief; they are subject to editing. Letters must contain your address and phone number.