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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: limtex who wrote (35104)11/21/2000 10:03:53 AM
From: slacker711  Read Replies (1) of 54805
 
If it was then it may take decades to ever get back there and the wait may be unitl a whole new generation of investors comes to the market.

I believe that this point was made a couple of weeks ago on this thread....most of us dont need the Nasdaq index to reach new highs before we are up compared to the beginning of 2000. At the beginning of this year, what % of the index was made up of internet stocks such as Priceline, Worldcom, Amazon, Yahoo etc...? None of these companies are guaranteed to ever reach new highs again...and may well provide a drag to the index over the coming years.

However this year has actually been pretty good for the G&K index and the W&W index. Both indexes are up a small percentage for the year....and more importantly most of the companies in the indexes have performed well for the year. This sets up a situation in which these companies have been allowed to grow into the stratospheric valuations that they had earlier....laying the groundwork for the stock price to match earnings growth over the coming years. I think most G&K investors would be happy to see their portfolios rise by a similair amount as the underlying companies earnings growth.

Slacker
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