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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Ron Dior who wrote (11742)	6/24/1999 1:57:00 PM
From: Stephen L	Respond to of 29970

Buckle-up because we may have a little turbulence ahead. One market commentary posits "Even though Greenspan suggested that the Fed will tighten on June 30, the market fared well because the CPI report indicated that the Fed's move is indeed preemptive." In the immortal words of an old highschool chum "Yuh Right". The real question is whether or not the capital markets have already incorporated the expected rate move into their valuations. The ten year Treasury has advanced from a low of 4.17% last October to more than 6.05% by noon today. Despite a minor correction in the equities market price to earnings rations remain at extremely high levels: the Dow at 26x, the S&P500 at 33x and NASDAQ at 109x. I know earnings are supposed to rock & roll next year: eps if Asia and Latin America continue to blossom, but wait...doesn't the slower growth that Greenspan so dearly wants imply that someone's earnings will slow? We know it won't be any of the DOT.COMs because most don't have earnings. But who will loose in this scenario. OK we know it won't be our brokers.