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Technology Stocks : Applied Micro Circuits Corp (AMCC)
AMCC 8.4500.0%Feb 3 4:00 PM EST

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To: MulhollandDrive who wrote (346)2/10/2000 8:25:00 PM
From: Guy Gordon  Read Replies (1) of 1805
 
I'm getting a nose-bleed. :-)

RE The New Economy:

I've posted this elsewhere. I think the talking heads on TV are missing something. (There's a shock!)

Year after year, they tell people to invest long-term. Why should it surprise them then, when people start paying up for two or three years worth of earnings?

They keep complaining that XYZ Corp is selling at x times next year's earnings. But what investors are saying is "I'm not selling this stock this year or next. I expect it to keep growing. I'm looking two-three years out."

I hope these people aren't fooling themselves. Because if they panic and sell in a correction they are in big trouble.
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