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Strategies & Market Trends : The Art of Investing
PICK 51.54+0.1%Dec 24 4:00 PM EST

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To: Sun Tzu who wrote (331)1/3/1999 10:52:00 AM
From: Frank Sheridan  Read Replies (1) of 10713
 
Predictions for the New Year.

(From somebody who has been nearly %100 wrong in the past!)

Overall, as far as the market goes, I think there is a trend for the market to look for and give high values to newer companies with new technology. The companies that can back up the valuations with fast growing market share and earnings will be the ones that really reward investors, whereas the stocks that don't come through with high growth earnings will get stomped like a bug. YHOO and AMZN really come to mind here. But, I would have shorted YHOO at $200 before the split. Good thing I don't play shorts.

When the inevitable happens and the bubble bursts on the internet stocks a lot of the money will be looking for a new home. That might be a big boost for less glamorous stocks and S&P 500 funds.

Geopolitical issues really have my attention. The market can react wildly to shocks in world news. These gyrations will represent excellent buying opportunities for the stalwart investor. What am I concerned about specifically?

Clinton being thrown out of office.
Clinton NOT being thrown out of office.
Yeltsin keeling over.
Saddam feeling his oats and starting a nice little war.
Milosivich feeling his oats and starting a nice little war.
Russian nationalists taking power and starting a really big war.
Asia crisis not being resolved and leading to instability.
China taking advantage of said instability.
Pakistan and India inviting each other to dance.

The list goes on but those are my biggest worries. However, I tend to be a bit of a doom and gloomer. Hopefully this will be a peaceful and prosperous year for us all. Knock wood.

Regards,
Frank Sheridan.
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