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

To: kami who wrote (46104)	4/13/2000 10:04:00 PM
From: B.REVERE	Respond to of 99985

This decline will continue at least through Monday as anyone who sold last year and has capital gains must now sell to pay the man. Greenspan spelled out today that the interest rate hikes are necessary to take out the credit liquidity that put the markets in this overvaluation position. The nasdaq is still well above p/e ratios that make any sense when you compare them to the earnings these companies are reporting. Will I pay 80 time earnings for sunw because their growth is going to be 25% going forward? That's ludicrous. Later,

To: kami who wrote (46104)	4/13/2000 10:42:00 PM
From: Jack T. Pearson	Respond to of 99985

I have also wondered if the current sell-off might reduce the "stock market wealth effect" enough in Greenspan's assessment to relieve the necessity for an additional rate hike at this time. But I believe that if the FED doesn't hike rates at their next opportunity, that will have more than a very short impact on the market. The downward momentum is currently too large. I'm seeing stocks sell off after spectacular earnings reports (AMD), so who cares about the absence or presence of a 1/4% short term rate hike.