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To: Ken98 who wrote (73496)	11/3/1999 4:54:00 PM
From: KeepItSimple	Read Replies (1) \| Respond to of 86076

>OR, have we become SO divorced from fundamentals that it just doesn't > matter? Um, did you happen to notice the movement in technology stocks today? And you don't know the answer to your question?

To: Ken98 who wrote (73496)	11/3/1999 5:28:00 PM
From: Haim R. Branisteanu	Respond to of 86076

Ken, the 1996 to present bull market phase was achieved by 4 main factors: 1. liquidity and strong dollar policy as directed by this administration 2. proliferation of misleading "proforma" financial statements grossly overstating corporate earnings. (remember actual earnings were flat for the last year) 3. Investment in each other stock by the majority of corporation trough their pension funds and 401K programs 4. the most successfull brainwash advertising campaign by US corporation, mutual funds and brokerage firms to lure in the public at large in this ponzi scheme called the US stock market "for the long term". All those actions resulted in huge trade deficits, a much greater debt bubble but full employment.- e.g the US did not earned their prosperity but borrowed their prosperity . A slowdown in consumer spending will trigger layoffs which in turn will turn many to be more cautious with their money and not bid to the stratosfere various stocks. A weakening in the stock market will follow. A flat or negative stock market will impact corporate profits who on average derive around 10% to 15% of their earnings (indirectly). Further foreigners will leave the US stock market which will also weaken the dollar and you have a spiral in the making. Same what happened the last 4 years but in reverse. BWDIK Haim