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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Robin who wrote (11830)	2/10/2000 3:31:00 PM
From: Trebor	Read Replies (1) \| Respond to of 15132

An excellent and thought-provoking post, imho. As my tech and dot com portfolio continues to exceed even my most optimistic projections, I will admit to harboring the same dark thoughts myself that maybe there really is a new era, a new paradigm. Maybe the old rules really don't apply.

To: Robin who wrote (11830)	2/10/2000 4:53:00 PM
From: Chris J. Horne	Read Replies (2) \| Respond to of 15132

Bob's focus is on the broad market...S&P 500 and Wilshire 5000. The dot-coms are not even on his radar screen. As he has said many times, this is similar to gambling. Most of the leading dot-com companies are not going to make it. However, I do have to agree with you...that focusing on historical valuations does not seem to be a good approach anymore, due to the flood of money being invested in the stock market, primarily by aging baby boomers. Using traditional stock market valuations...is like looking at a house in a hot housing market...and saying...well...the cost to construct this house is $150,000, but they are asking a million dollars for it, so it is overvalued. Supply and demand is a major factor in any market. Right now, the demand is up due to the baby boomers buying. It does not seem appropriate to me to think that traditional PEs mean anything.