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

To: johnd who wrote (28940)	8/31/1999 5:44:00 PM
From: t2	Read Replies (2) \| Respond to of 74651

johnd, My feeling is that the stock market is just way undervalued, considering the amount of money looking for a home. There is just so much liquidity. I cannot imagine a sustained downturn in the Nasdaq (the dow is different due to only 30 stocks). My opinion is that the bullish forecasts by the wall street gurus about the year end values of the markets are too conservative. Think about this: If you are a large mutual fund holding cash in the event of a correction. What happens if the prices don't drop? You end up buying before the start of the new year. This is really the last real uncertainty (i mean the Y2k). Factoring in the excess cash on the sidelines, the usual short sellers in the market around this time of year, the defensive portfolios of investors who already are anticipating a Y2K related correction, the continuous flow of money into the market----what do you get? Well you won't get any correction for one but if it does occur, it will very short in duration. The most likely scenario is a market that just goes KABOOOOOM!!!! By that i mean an explosive rally that we have not seen in a long time. From now until February, we should have the greatest percentage gains in the Nasdaq and the S&P 500 that we have seen in years. (I can't say how big the gains will be for the Dow due to its narrow focus). Last year's late year rally will be very plain in comparison to this year, IMHO. BTW--I took me a while to come to this conclusion. I was guessing that we would have a huge selloff in late July as well as August and September. Then i started reconsidering and now i am convinced of the potentially monsterous move in the markets. Just my bullish guesses. Of course, i could way way off base.