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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: CGarcia who wrote (21836)	6/14/1999 1:26:00 AM
From: stock bull	Read Replies (1) \| Respond to of 41369

CGarcia, re:<<Hahaha...You tell em Ed...Charts mean absolutely nothing and ARE about as exciting as watching flies do the nasty! Hogwash aside, let's think back to last October when the Asia financial crisis loomed over us...where was AOL back then($17)? Where did it go up to just 6 months later($175)?...Bottom line, if you are long on a great stock like AOL, no need to worry...It's obvious the whole market is in a correction now and this is when the shorts show up to spread panic...The longs will rise once again, only this time we'll see even higher highs...Good luck to you! >> Your posting maybe absolutely correct. However, you should keep in mind that this is not last Oct. We are now facing a period of threaten rates increases by the Fed. We may get a 25 basis point increase at the end of this month. Some are forecasting the possibility of a 50 basis point increase. High interest rates have a negative impact on high pe stocks...such as Aol, among many others. On top of everything, Aol has not responded to concerns over their European interent strategy; ie, free net access, growth of their subscriber base, etc. Domestically, the broadband issue is hanging over the stocks performance. These issues represent fundamental problems with the company, at least in my opinion. Than we have the issue of profit taking that has hit all the internet stocks. On top of that, we have a falling Dow, Nas, and S&P to contend with. IMO, risk far outways the rewards at this point with Aol and many other high tech issues. In fact, there are some indicators that we maybe heading into a bear market. The money supply (M2 and M3) is shrinking, and the bull bear ratio at their highs...a contrary indicator, and the emerging countries, Asia and Japan showing signs of recovering. The recovery of these countries will add to the global inflationary pressures which in turn can help to further drive up U.S. interest rates. Inflation and interest rates will induce a bear market. So, IMO a defensive position is now the order of the day. Stock Bull