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Technology Stocks : Newbridge Networks
NN 15.07+3.8%2:21 PM EST

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To: Mark Kubisz who wrote (4007)4/4/1998 12:18:00 PM
From: Doug   of 18016
 
Mark: Asset inflation is as important as other indexes of Inflation. In the 80's asset inflation took the form of real estate and what followed was a deflationary cycle. During the last 5 yrs asset inflation has taken the form of Stocks.

The expected returns in the stock market are currently out of
line with returns in other forms of Investment or GDP growth (3%). History has shown that such divergence will be corrected. I will rest my case by referring you to the Japanese Stock market which has been halved and still remains in that mode.

The current "Money pouring" reasons you quote are no different to those of the Tulip mania days.

I am sure that sensible Investors here would prefer periodic corrections in valuations rather than a crash correction that incidentally has also occurred in US markets.
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