Why's that? Because 2006 was a veritable cornucopia of telecom stock explosions. In short, along with emerging markets and precious metals, telecom ruled the world.
2006 was the year that proved 99% of pundits wrong. First of all, stocks went up. Second of all, there were some real shockers in the mix: Telecom was hot! It's the year that showed why "contrairian" often works in investing.
I don't recally anybody predicting this. No, to pound the table in December, 2005, saying that AT&T would be one the leading performers in the Dow in 2006 would have smacked of insanity. You might have been institutionalized. But you would have gotten rich.
Now, you could have looked at Rostelecom in July, when it was only up 112 percent, and thought you were too late to buy it. You would have been wrong.
After all the hemming and hawing, Google, meanwhile, hit $500 a share in November, but ended the year at $460.48, up only 11 percent -- hardly a barn-burner when compared with Rostelecom. Was I right on my prediction that Google hype has peaked? Not quite, but then again, with a yearly gain of only 11 percent when AT&T is moving nearly 50 percent, the hype/earnings (H/E) ratio still seems majorly out of whack. (See Google Is Overvalued and Google Hypometer in the Red.) No, those fancy Silicon Valley dudes didn't have nuthin' on the Ruskies in 2006.
— R. Scott Raynovich, Editor in Chief, Light Reading