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To: KeepItSimple who wrote (102870)	5/6/2000 4:50:00 PM
From: GST	Read Replies (1) \| Respond to of 164685

KIS: <Why do people keep repeating that ludicrous statement about the market never doing what the majority thinks it will?> I think it is the sometimes surprising way the market discounts information that leads people to this conclusion -- that and the system dynamics which take the market to absurd points, and arrives at these points at precisely those times when the majority finally agree that what was considered absurd before, now is "normal" -- which is, I believe, exactly what we have been seeing for some time now, with a modest retrenchment in recent weeks. We experienced a major top -- and there are many frustrated players wishing they had the smarts to leave the party a couple of months ago. William left, and then almost immediately jumped back in -- could not let go of the idea that the market was simply "correcting". This crowd will now hang on every opportunity to push the idea that it is now safe to be absurd again -- in this environment they are the "normal" ones. They will probably stay in the market win or lose because they end up believing their own propaganda. They will continue to believe it is "normal" for companies with uncertain prospects to sell at 100 times earnings, and it is "normal" for firms with such poor prospects that you can only see them by closing your eyes to sell at 100, 200, 300, or 400 times sales as they gush red ink. It is still "absurd" to think that companies with uncertain prospects will soon trade at P/E multiples below 20, or that firms with weak balance sheets and no immediate prospects for success as businesses will go bankrupt leaving shareholders with nothing. KIS, in this environment you are not normal, in fact you are the one who is absurd -- be proud of it.