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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (37532)	1/15/2000 7:46:00 PM
From: Crimson Ghost	Respond to of 99985

Latest conference call of institutional money money Don Coxe argues that the force driving the market now is the hope that intenet companies will acquire more mundane businesses at huge premiums a la AOL/Time warner. He recognizes this will end very badly but feels it could go on for some time yet. I have my doubts. This is exactly the same thing the conglomerates did in the late 1960s -- using high P/E stock to acquire more reasonably valued firms. And it increases pressure on the Fed to tighten more aggressively as the bubble spreads out from the techs to other areas of the market. The 1960s merger wave ended disastrously for many players and the conclusion of this wave probably will be a whole lot worse. jonesheward.com