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To: sea_biscuit who wrote (19297)	7/15/1999 3:26:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

Yes battling the indexing of the S&P 500 is like swimming against a raging torrent with one hand tied behind your back. It's almost unfair since in a raging economy there is so much wealth being generated that money be it retirement or otherwise tends to flow to the companies that are the biggest (deemed 'safe') and hence relatively independent of stock picking risk. This means the biggest just keep getting bigger and their P/E ratios start to 'stretch' and the bubble starts to get unstable. At some point the bubble will burst since no stock can support large multiples forever without underlying unimaginable strength in the biz. [CSCO is an example of a good company that is ludicrously priced.] This also means that some of the largest stocks are the most speculative stocks around. But when will it change? It may have done so last Q - though that may have been a blip. Me I tend to ignore these large stocks completely and put virtually everything (save I think 3%-5%) elsewhere.