It seems like there is always some sector of business that is the darling of the investor community. We often see the same life-cycle as the investment community becomes infatuated, potentially over-invests and then dumps them for someone else.

What do you predict will be one of the next sectors to capture the fancy of the investment community?

Not sure about public investor, but there's a lot of private investment in so-called Web 2.0 companies. Basically, it's dotcom all over all, with companies with no real business plan being pumped full of VC funding. If you see any of these new tech companies float, stay the hell away from them.

People never learn, I guess. The last dotcom boom was insane since most of the companies that received funding never made any profit at all. I just can not see that happening again, which means it probably will happen again.

The problem is you have places like google out there and so that stokes the hype where people can say they are going to be the next google.

The dotcom bust made investors wary of internet companies. Now they can see that the internet is booming interest turns again to internet companies. The buzzwords are 'search' and 'social marketing', so any start-up throwing those around with a name behind it is guaranteed serious investment consideration. Mostly private investment though but expect a lot of these to start floating over the next couple of years as the angel investors seek returns or to simply recover their cash.

That's great advice to watch for those buzzwords. As someone who learned the hard way during the dot com explosion, stick to quality companies who actually make money.

I guess it's also helps not to be carried away by the hype - or, if you do - at least try and get in at the start, and leave while you can still make profit.