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To: marc ultra who wrote (7893)	8/19/1999 12:37:00 AM
From: JF Quinnelly	Respond to of 15132

But the NAZ leaders are still too close to their highs to describe them as having broken down, wouldn't you say? They could easily regain their leadership from here, whereas the 'Nutz are finished. Foreign money likes the Dow, its something they feel safe investing in. I wonder if that's part of the strength? Or is it a "safe haven" move away from the NAZ by domestic investors? Lots of liquidity in those big Dow stocks.

To: marc ultra who wrote (7893)	8/19/1999 12:44:00 AM
From: mister topes	Read Replies (1) \| Respond to of 15132

And don't forget to add another of the high flying leadership high p/e groups, the pharmaceuticals. These babies have been clobbered and are trading far below their prior highs. More evidence of lost leadership and p/e compression caused by higher interest rates and increased inflation concern. WCOM is another growth stock not growing. The Dow's importance now is exactly as you observe. The Dow is a cyclical dominated index which is far outperforming the former leadership index, the S&P. However, this cannot continue indefinitely. But can the S&P resolve this divergence in its favor by convincing investors to pay ever higher growth stock p/e ratios in a period of tightening monetary trends?