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Politics : Formerly About Applied Materials
AMAT 267.87-0.6%Dec 5 9:30 AM EST

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To: Tito L. Nisperos Jr. who wrote (31770)8/8/1999 1:37:00 PM
From: Gottfried   of 70976
 
Tito, thanks for your thoughts on the Fed model. I don't
subscribe to it, but like to see what it says. It provides
a yard[eni] stick to compare average stock prices to. If
one believes that stock prices in the long run are
dependend on earnings growth, then it makes some sense.

But it doesn't predict the future direction of stock
prices. Right now there are a few overpriced stocks
and many underpriced ones. Investors seem to flock
to the overpriced ones, making the whole market look
toppy.

Gottfried
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