Dear Sherrie:
So far, I'm watching myself implode (a new margin call), just when you thought it was safe. What I fail to understand is that all of this talk about "fuel prices skyrocketing", one has to remember that the recent sub $1.00 per gallon gas price (which was briefly seen), didn't exist for quite a number of years. Fuel prices are still somewhat lower then they were a year ago from today. What disturbs me is that there appears to be a hair trigger on the market where any potentially "disturbing" news will drop the market 200 points without blinking an eye. Examples are Rubin's resignation (perhaps it would have been more palatable, if they would have re-phrased it as "retiring" instead of resignation), and the CPI numbers. It seems as if we have a very nervous market. Another issue is the broadening of the market. For several years, there were concerns expressed by some mayvins that the market highs were only the result of gains within a very narrow (read- tech) sector of the market. That was supposed to be the bad news. Now with the broadening of the markets to include cyclicals, there is less money available to maintain the growth in valuation of tech/internet sector (just my opinion).
To further complicate the picture is uncertainty. The market can tolerate good news and bad news (well, maybe it can't), but the market surely cannot tolerate a sense of uncertainty. Once a yea/nea decision is made by the fed, it will reduce uncertainty in the market, which will cause those to question the markets valuation to realize that their arguement is overblown, and growth in valuation will continue.
On the other hand, what do I know, I'm stuck with managed care which is another nightmare in istelf.
Long term, the findamentals of AOL has not changed. It's is still a leader in it's sector and will continue to grow, inovate, and reinvent itself.
Another fact to consider is that this is the week of options expiration (in addition to the fed meeting).
Now, where did I place my compazine <g>.
Best wishes,
David
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