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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (30940)	3/20/2000 10:45:00 PM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

<<Tech stocks started the day in bullish fashion, but that sentiment quickly changed as bad news from MicroStrategy (off $140 at $86.75), coupled with another sharp retreat in the biotech sector, sent investors scurrying to the sidelines. When the closing bell sounded, the NASDAQ Composite found itself down a whopping 188 points at 4610.00 - its third-largest point drop in history. In stark contrast, the Dow Industrials continued to flex its muscles as investors put more money into the ?old economy? stocks. This flight to quality precedes tomorrow?s FOMC meeting, at which Greenspan is expected to raise interest rates again - his fifth hike in the last eight months. For the day, the Dow gained 85 points to bring it above the 10,680 mark. >> Now the bonds use to be flight to quality to read that old economy is now considered as flight to quality is just good news after all the oldeconomy has thebanf the new economy has the huge cyber vaccum space.. it can still suck in lot of $'s but the real money isin old economy and that is what market is running too, IBM DELL INTC did well although MSFT faltered so did CSCO but overallthe composite is much worst than what is gives an appearance without AOL IBM and otehr contributors the drop would have been 240 point the largest ever, until it takes out the 13 days MA on two closing basis to early to call a bounce as I have explained earlier. <<1493 SPM immediate resistance, 1482 support on SPM.. LSI looking good MU targets raised considerably today fwiw, the anlysts say that the trends looks good and dram prices bottoming..10687 is the point of resistance on DOW and 10550 as support..>> WE did test 1491-92 area and went below that interim support of 1482 to close at 1477 at one time we were as low as 1469-70, much above key pivotal 1462-65 support on SPM, I think market has built in two hikes not one, so one hike today may cause a little volatility but nothing more, asset deflation target is moving along alright for AG, his ealrier hikes were hitting the old economy far more severely than the pockets where new inflation infested wealth was churning out at full speed, now that some order is in place and he would look at this closing gap betweenthe old and new economy valuations he would intelligent enough a man to prod the move in the right direction, close this divergence and this lop sided relationship between market captilisation and earnings would disappear, to be more specific we have 489 bn $ say 500 bn $ earnings for a total market cap of 12.8 trillion$. Out of this market cap of 12.8trillion $ 4 trillion makes nothing but promises the other 8.8trillion$ carries the entire weight of the market with its earnings. However, that sector sells at a huge discount and the one that promises rose gardens to make money from the 'money making segment' of the market sells at premium of 200 times 2001 earnings. Now that is rich asumption by any standards,firstly when AG rises rates it is the earning making sector that is hit the hardest but it is short-termism at its best the argument that new economy would not suffer as they don't have debt is nothing but non-sense, after all all these new economy companies future incomes stream are discounted to present, with interest rates rising that takes a huge tool on their vlauations, far bigger than interest rate hike cost on old economy debt. The second reason that new economy cannot survive without old economy is based on new economy cash flow so much dpenedent on the good health of old economy, after the credentials of any new 100 billion $ company floated overnight are only one it has either list of Fortune 500 clients or hastechnology to sell them, so go KM with your children money abnd buy Outo f the monies for these speculative stocks once they close above the 13 days MA twice on NDX, be late but don't be sorry, MY kids retirment funds deserve a little deeper thinking than noise of the web OR SI FOR THAT MATTER, yes we don't make a 100 in overnight but we don't loose it either on weeks like now, be in the new economy with your speculative money and in the old economy like IBM MSFT TXN LSI LRCX AMAT csco emc AND OTHERS I HAVE HIGHLIGHTED MANY TIMES BEFORE WITH YOUR REAL MONEY IN LONG TERM I THINK I WILL DO ALRIGHT..