Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: The Duke of URL© who wrote (2722)	3/30/2000 6:38:00 PM
From: Sir Auric Goldfinger	Respond to of 3543

To put it in perspective, I think that the last tiem we went over 1.39 was September of 1987.

To: The Duke of URL© who wrote (2722)	3/30/2000 7:07:00 PM
From: Mad2	Respond to of 3543

Wilshire provides tools to monitor total market valuations. It's my understanding that 1 point on the Wilshire 5000 is 1.16 bil in market cap wilshire.com Given the 52 week low on the Wilshire 5000 is 11,291 and the high of 14,991 was just hit last Friday the 24th I'd say we have seen stellar gains given the low was hit in mid Oct of 99 for a gain of 32.7% in a 5 month period. We are still 25.1% ahead of the October 99 low, all this in the face of the Fed raising rates, record unemployment and due to the influx of cash into the market. With stock mutual funds at record low cash levels and the level of household wealth invested in equities at a record level as well (61% as cited by Barrons), double of its level 2 years ago it is mindboggling to assume more cash can come in to push valuations higher to say nothing of the push provided by margin debit. There is no doubt we are near the peak, perhaps we hit it last Friday. In a aggregate, rising rates, tight labor and potential inflation pressures (from the resurgance of Asian economies) will eat at the earnings of US corporations. Who knows if a soft landing is possible, however given we are in a election year I wonder if policy won't change should the fed suceed in slowing our growth. Growth has been the engine that has driven equities to our current levels, which cures all ills at the corporate level. Unfortunatly when that growth is taken away, the imputus to deal with the problems only comes after the dammage is apparent. Mad2 Cash is king