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

To: Gold Beach who wrote (28894)	8/8/1999 5:17:00 PM
From: J Krnjeu	Respond to of 41369

Mr. Donald William Matter, I really do not have any idea which way stocks will go on Monday. I would hope up esp. AOL but in reality stocks will probably go down. It seems like the market will trade down or sideways until the interest rate issues are decided. I believe this whole market retreat is due to Allan Greenspan and his raising interest rates. Most companies are producing more profit than last year and the economy is better off than last year. I believe if we didn't have this interest rate hanging over the market, AOL would have been in the 200's. I think the FED, AG, just wanted to get the markets to give back as they still believe stocks should go up maybe 1%- 2% a year as they did in the 60's & 70's. I believe the FED is composed of old line economists who do not have a handle on how to evaluate these new technologies. 20 years ago, economists never believed you could have full employment and no inflation, it was just impossible! They had to rewrite the text books on that one! By the way, why should interest rates be at 6% - 7%? Why can't interest rates be 2% - 3% as in the 50's & 60's? With the government burrowing less and moving out of the credit markets this should mean interest rates drop. Is it because the text books say interest should be 6% -7%? I believe with the advent of technologies occurring as rapidly as they do, most economists will be unable to figure out how to incorporate these technologies in their models. Heck, when I took econ the first thing we had to do when building a model was remove people from the model. That was because people are irrational and the models would not make sense with people in them. Sorry for the long winded post. Thank You JK