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To: Chuzzlewit who wrote (149620)	12/21/1999 12:44:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 176387

<<Sony had a P/E of 92 in 1972. In 1980 it had fallen to 17. Polaroid's went from 90 to 16. McDonald's dropped from 83 to 9.>. Yes, but look what happened in those years. The Arab oil embargo brought on hyperinflation in all sectors of the US economy for the first time since the Civil War, the Fed raised interest rates to 18% prime, millions were out of work and you had a stagflation. people cut way back on buying the products of these companies, and stockholders fled the stock market to buy bonds returning 18 per cent per annum or to trade California houses (and all real estate) like a commodity. People bough kruggerands,etc. Chuzz, do you expect a similar economic catastrophe in the future to whack the Nifty Fifty of today? If not, what will necessarily cause their crash, if as you say, thier prospects are excellent? jhg

To: Chuzzlewit who wrote (149620)	12/21/1999 6:37:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 176387

Chuzz, you make a lot of sense, as always. To me, though, the big difference between the old nifty fifty and the new nifty fifty is that there was no Internet then. I think the piling on to stocks in that sector (and I mean the infrastructure companies like Cisco) is just in the first or second inning, as some analysts like to say. I could be wrong, but all I can do is continue to invest according to this conclusion. Tony