T. Rowe's Gensler Smells Cash in Telecom

Let's go back to traditional TV for a second. What are the networks going to do postelection to keep the ad dollars rolling in?

It's a real question mark. It's tough to know what's going to happen to traditional television in 2005. On top of those worries, the Internet is making serious inroads into corporate advertising budgets at the expense of the television industry. Paid Internet search is growing much faster than traditional media purchases. The answer to your question may be that traditional media will have only moderate growth.

Where do you see the U.S. economy going in 2005 and how do you trace it back to your fund?

We are in a growth phase, even if it is slower growth. I'm not looking for the 20% grower even though we have some of those in our dynamic Internet names. Earnings are going to be growing at 10% to 12% a year, and that's still pretty good to me.

After the bubble burst, a lot of companies that we follow cleaned up their balance sheets and really improved their cash flow positions. The real question for next year is what they do with all that cash. Hopefully they return it to the shareholders instead of going on acquisition sprees.