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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: d[-_-]b who wrote (28804)	8/27/1999 5:08:00 PM
From: Gerald Walls	Respond to of 74651

Can't say I want him replaced, I think the market likes uncertainty even less than what AG might have to say. Perhaps - The market shouldn't take every word as a harbinger of doom. If he were serious about cracking this market then he'd make a Reg T adjustment to change stock margin limits to 60% or 70% from the 50% that it's been for years. With as leveraged as a lot of folks are now that would sure do the job. As it is now I read somewhere that soon you'll be able to get margin on 25% of the value of your LEAPS with 90+ days remaining.

To: d[-_-]b who wrote (28804)	8/27/1999 6:07:00 PM
From: johnd	Read Replies (3) \| Respond to of 74651

AG is I think is reasonable. He is rightfully worried about valuations. Dow started year at 9189. Back then it was richly priced. During the last 8 months, earnings have gone up for the dow stocks by about 8%. Everything else being equal the dow should be around 9900 purely based on earnings and 98 year-end reference. But the dow has actullay gone up thrice that much. In an environment, where interest rates are higher by 1%. So the really should be at around 9300 - 9400. Abby Cohen said at year beginning that 9800 should be a good year end 99 target. Wall street keeps getting so optimistic, it runs way ahead of earnings. Individuals are margined to death. Savings rates are at record low in history. Credit card borrowings are at record levels. Most stocks are in a parabolic mode. I wouldn't be surprised September or October bring severe downturns. In fact for long termers, it may be good to have such a correction.