A survey released yesterday reports that Internet stocks are primarily held by younger investors who expect rates of return that are much higher than average investors.
According to the Index of Investor Optimism, a joint effort of PaineWebber and Gallup, only 15 percent of all investors have owned Internet stocks, but 27 percent of investors under 40 have traded Internet companies.
These investors say they expect returns of 30.6 percent in the next year, while Internet company shareholders who are older than 40 expect a 14.7 percent return on their money.
For now, it looks a 30.6 percent return for Internet stocks this year isn’t at all ridiculous. Let’s just hope these younger investors don’t expect a steady 30.6 percent return over time.