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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)
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To: Gerald Underwood who wrote (6615)11/28/1997 11:05:00 AM
From: Skeptic  Read Replies (2) of 31646
 
With all due respect to your y2k bearish inclinations, I believe you would truely be better off in utilities, that is until they become deregulated or until 1999.

What's wrong with cash? My concern is that the market does not appear to be discounting the potential impact of Y2K at all. The prevalent justification for historically high valuations is that the economic environment is perfect. Yet, there is clearly a very definite probability of major economic disruptions only two years away.

You are apparently not familiar with the efficient market theory. If you were you could see that the market values y2k stocks very highly in spite of the insecurity you express about the y2k sector.

One of the problem with the efficient market hypothesis is that different investors have different time horizons. Whether Y2K stocks perform spectacularly or not over the next two years depends on whether their current or future growth rates get more attention. I'm betting on the latter because most of the money is controlled by professionals who know that most of the value in any stock comes from long term earnings growth.

Many people seem to believe that a lot of suckers will jump into the Y2K stocks as the economic impact becomes apparent. I'm betting that there will be a flood of money out of ALL stocks. Only time will tell.
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