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

To: IndexTrader who wrote (41485)	2/26/2000 3:46:00 PM
From: awi	Respond to of 99985

Susan, I think you could well be right with your assessment. The old era companies will be transformed profoundly as they integrate new technological innovations in their businesses. This will spur new growth. In the mean time, the new companies will of course benefit from all the goods and services they will provide to the old ones. Indeed, if the AOL/TWX merger is any indication, the future will hold great promise to old companies will valuations of new companies at their present valuation will probably contract or move sideways for a prolonged period of time. I agree that the process will be disruptive from time to time, but that will be good as this will weed out excesses and provide fertile soil for new growth. In any case, there is no need to trash old economy stocks IMO although they have to be realistically valued of course.

To: IndexTrader who wrote (41485)	2/26/2000 3:49:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

IndexTrader: I did not want your post to go un-responded to...<g> I think you are in the ball park with your thoughts, but its Saturday and I am about to go out for my 20 mile run (take that Michael...hehehe) so I will conclude by saying keep posting your thoughts...<g> Regards, LG

To: IndexTrader who wrote (41485)	2/26/2000 4:13:00 PM
From: Stephen	Respond to of 99985

Last autumn a large brokerage hosted its annual get together for smaller fund managers and their theme was the 'new era' economy and the technology companies that should be invested in whilst the game was so early. Most managers went away in total agreement and I assume that since then their funds have been directed/reallocated to these companies/stocks. My own perspective was that valuations of many high growth company stocks were so rich that it was necessary for a theme to be invented that allowed the game to continue whilst keeping realism at bay. Hence the moves in the biotechs, wireless, battery power, broadband plays where the end of the expansion dance is hard to predict. In the end, the key to a successful stock has been the story rather than the fundamentals ... and a time frame sufficient that it blurs the future picture regarding the slowing of growth or replacement technology. This statement is not meant to encompass all the stocks that have had great runs ... but certainly many of them. In the end its just a game that more people are playing and trading.. and they needed a vehicle ... And so the 'new era' concept was declared ... something to believe in and to sell to investors. Before this last great leg up in the techs started last fall ... everyone was scared of a crash ... but once it didn't happen the story of a 'new era' led by technology was fashioned to fuel the autumn/spring rally. I believe thats all it was ... just a necessary game .... all imho, of course Stephen