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

To: sandeep who wrote (41064)	2/23/2000 1:46:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

The growth is through raising funds not business operations. If you can sell your shares to the public at premium prices and use the funds for operations, then interest rates won't affect them in the very short-term. In addition, they can trade the shares of companies they do business with in order to enhance EPS. The IPO market hasn't missed a beat since last Summer's internet correction.

To: sandeep who wrote (41064)	2/23/2000 1:50:00 PM
From: pater tenebrarum	Respond to of 99985

sandeep, i am well aware of the rationalizations you cite. however, i believe they are wrong. the transportation average, which is one of the leading economic indicators is at a new low. the yield curve is inverted. do you honestly believe that when 'old economy' cos begin to feel the pinch of a slowdown and begin to cut their capex programs, the hi-tech cos growth rates will be unaffected? it is an intellectual fallacy to believe that different sectors of the economy can remain disjointed forever. take a look at the NAZ performance shortly before or during recessions...it has always been the worst performer under such conditions. imo we are simply witnesses to one of the greatest speculative episodes ever. note that i do not want to detract from the profoundness and importance of the tech revolution. i am only skeptical as to whether it really justifies the valuations put on stocks involved in it under the above (or indeed any) scenario. regards, hb