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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Eski who wrote (6786)	2/25/2000 5:58:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 24042

I would love that.. Think of the deals.. Greg

To: Eski who wrote (6786)	2/26/2000 8:19:00 AM
From: nihil	Read Replies (2) \| Respond to of 24042

Dow drag down NASDAQ That is almost economically impossible. As DOW stock owners sell they have been buying the "tech-heavy" NASDAQ stocks with some of the money from the sales (creating and destroying money in exactly equal quantities). Other buyers have been leveraging techs, creating money by getting margin loans. In addition, many foreign investors have been pouring money into the NASDAQ. The NASDAQ is a confidence game. The stock values are based purely on expectations. PE of of 100 or more can be justified for all of them, if eventually they absorb each other and the market continues to grow rapid by 30% of more for a decade or more. (Always remember China). Why would anyone want to own a stock whose earnings grow 5 % a year when there are plenty who earnings grow by 30% a year, and may grow that fast for many many years (JDSU, CISCO, QCOM come to mind. ) The hypergrowth stocks, IMO, may be largely immune to correction as long as internet saturation won't occur until 2020 or later. There will be dips (on which the wise will buy), but most of the old-economy stocks in the U.S. have little growth potential, and no one really cares to hold them. The mutual funds cannot afford to own, unless they can transform themselves in hypergrowth stocks themselves. Almost all investors in the world are hopping on a handful of hypergrowth stocks. This makes them even more overvalued by conventional stock-market standards, and makes them grow even faster. The incapacity of old-economy stocks to grow means the brightest people will move into hypergrowth and make it even more difficult for the old-economy to grow. As long as the future vision is the global internet one must invest in Sun, Cisco, Intel, Qualcomm, JDSU, Global Crossing, with all of the risk that that entails. There are many smaller companies and biotechs that have a future, but they lack the mass to multiply their velocity to build up much momentum. They can grow rapidly, but the sustainability is questionable.