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Technology Stocks : America On-Line (AOL)

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To: JDN who wrote (39801)5/19/2000 10:00:00 AM
From: Dr. Zax  Read Replies (1) of 41369
 
JDN,

Chill. For the last three years (or more) stocks have been going up more than they should have been. We now need some time for earnings to catch up with these prices. It's not greenspan's fault or anyone one person's fault -- in fact if he had done nothing over the last year, we'd be stuck in an inflation driven recession at the moment. It is the fault of the people kept buying buy stocks over extending their P/E ratios.

As we wait for earnings to catch up, stock prices aren't going to move much. Invest for the long term. Don't invest money you don't need for three years. Don't short the companies that will survive. If you can't take the heat, hold cash. Do those and you'll be fine.

Dr.Zax
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