Dow: Don't Let the Comeback Fool You

NEW YORK: The Dow was up again on Wednesday morning. In Japan, the yen has stablilized. So your sagging portfolio is finally safe, right? Wrong. TIME Wall Street columnist Daniel Kadlec believes that the bargain-hunters who've been buying since Tuesday's nadir (which represented a 10 percent correction of the Dow's July high) will be disappointed with their purchases. "Just because the stocks are cheaper, doesn't mean they're cheap," he says. "According to fundamental measures, we're still in nosebleed territory. The markets are still in a lot of trouble."

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That possibility hasn't yet shaken investors' faith in their darlings, though: Internet stocks are leading the buyback, with the four belwethers, Yahoo, Lycos, Amazon.com, and Excite, up a combined 13 points by mid-morning. But heed Kadlec's tip du jour: Internet stocks will be the next to fall.