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

To: E. Davies who wrote (13712)	8/7/1999 2:21:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 29970

You misunderstand what I mean by "recession". An extreme recession is no "hard times". Hard times is no longer permitted. Consumption spending is inexorable. In the last 50 years no recession has cooled it and the '30s only slowed it a little contrary to what the mass brainwashing by historians would have you believe. It is discretionary spending that is impacted by recession. Inflation induces the effective recession of modern times. When prices rise faster than real income people look for cheaper alternatives. It doesn't take long to learn that going out for entertainment is inflated beyond reason. As long as incomes have risen faster that component of inflation has no impact. You don't mind laying out the dough because the stock market is making you rich. When the people finally see that the stock market is on the long trail down attitudes change and cheaper alternatives are sought. The Net is the quintessence of the cheap alternative. If gas is high, you buy over the Net rather than go downtown. Entertainment costs are incomparably lower over the Net. Regardless of macroeconomic conditions physical entities can't compete with virtual ones over the Net. Consumption spending share will continue to rise over the Net because of the implied cost economies of scale. The way it will work is the Net stocks will persist down until they are total disasters and at that time people will see that the haggis is in the fire for sure. The big companies will be inching down and things will be getting quietly desperate in the perception of the condition of the economy. Then the Net stocks will start advancing and everyone on SI will sneer at them. Their rise will persist with rising public doubt.