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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (81095)	10/18/1999 6:21:00 PM
From: Rob S.	Read Replies (3) \| Respond to of 164684

One thought: The tech heavy NASDAQ has exploded to the upside over the past 52 weeks from a low of 1614 to a high of 2923 (up 81%). Despite the minor correction of the past few days, it is still up about 67%. In the meantime, small and mid cap stocks in general have faired poorly, creating one of the widest divergences between the nifty 200 stocks & sectors and the rest of the market. Certainly there is tremendous change taking place in the communications media (the Inter.bloated.expectations.net) that will lead to new leaders in the economy and a revised definition for corporate success. However, it is irrational to assume that the worth of a select few companies has mushroomed so much that it far exceeds the real growth in the economy. While the economy is growing at a healthy clip, like about 4%-5% the valuation of the NASDAQ has swelled by 67% in a single year. In the final accounting, (maybe several years from now), the valuations of stocks will more closely tract real economic growth plus some rational valuation expansion due to growth expectations(which logically leads to contraction when growth rates subside). Having said that, this correction will end within a couple weeks and the market will bounce. The go-go days are still with us and likely will be, although hemmed in by the FED, until the initial growth phase of the Internet winds down.