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To: Harry Landsiedel who wrote (91236)	10/29/1999 12:30:00 AM
From: Paul Engel	Read Replies (5) \| Respond to of 186894

Harry - Re: My beef with Greenspan is his jawboning the market regarding asset values. The S&P has a PE of 26. He's appoplectic about that. But the reality is the bottom 400 of the S&P has a PE of 16, which is not unrealistic at all, given interest rates and growth rates. So what happens every time he questions valuations? The High PE stocks don't correct, 'cause those who own them don't pay much attention to valuation. But those who own the "value" stocks DO pay attention to valuation, and those MF managers hit the panic button and sell. That's part of the reason for the two tier market that we have, IMHO." That's an interesting analysis. I often wonder why Wall Street big shots always emphasize the SHORT TERM, trade in and out on whims, while all the time trying to con individuals into thinking this is a LONG TERM INVESTMENT BUSINESS and they should turn their hard earned dollars over to these hair-triggered, glorified day-traders. Paul

To: Harry Landsiedel who wrote (91236)	10/29/1999 12:46:00 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 186894

RE:"My beef with Greenspan is his jawboning the market regarding asset values."... You should be happy he does this. 1. It prolongs the bull market. 2. Keeps the markets from going parabolic. 3. Reassures new investors that there is some stability in the markets by buffering the Keynesian cyclicality of the markets. 4. Increases buying opportunities for those who have to average in over time. --- Over the long term the market has moved up anyway. The result of demographic forces of the baby boom generation.

To: Harry Landsiedel who wrote (91236)	10/29/1999 12:51:00 AM
From: Jim McMannis	Respond to of 186894

RE:"So what happens every time he questions valuations? The High PE stocks don't correct, 'cause those who own them don't pay much attention to valuation. But those who own the "value" stocks DO pay attention to valuation, and those MF managers hit the panic button and sell. That's part of the reason for the two tier market that we have, IMHO."... This is a rather interesting phenomenon. Seems the high flyers are much more fearless than those who dump the "value" stocks, as you put it. OTOH, seems there are about 50 stocks holding the whole market up. Fact of the matter is, there is so much new money on the side lines every month it's hard for the markets to get much of a down trend going. Still a couple months left in the year to get a real panic going though. Jim