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

To: taxman who wrote (30680)	10/17/1999 1:10:00 PM
From: John F. Dowd	Respond to of 74651

taxman: Your challenge thrown at Tom is reminiscent of Mr. G's Solomon like questioning of whether or not Americans are aware of and have discounted the risk premium between stocks and bonds. FWIW I see the earnings of technology corps. increasing at an unprecedented rate whereas I don't see the same occurring in the area of bond yields. Mr. G. has turned the world of investing upside down. In times of inflation fixed income securities are a guaranteed loser both in terms of preservation of capital as well as buying power. What is the wisdom in selling at this point? Those that are being stampeded are playing into the hands of the manipulators just as the folks back in 29 did. Fortunately there are things that the timid can do short of selling at the lows and paying taxes. They can write calls and buy puts with the proceeds from the call sale and limit the volatility. They can sell deep in the money calls and decide later whether to liquidate the call or the position or they can do as Tom is doing set up a situation whereby they can by in at an effectively much lower cost after perhaps selling out of the underlying stock. The beauty of the market today is that there are a lot of thinking individual investors out there who are actually a lot smarter than the pros. It is interesting that we now begin to see ads by mutual funds painting our TV screens. They are hoping that individual Americans will lose confidence in their newly discovered skills and go back to the womb of funds that do no better but charge a fee anyway. Good Luck to us all in withstanding the demons of fear and short sightedness this coming week. JFD