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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (34836)	5/8/2000 2:19:00 PM
From: Rarebird	Read Replies (2) \| Respond to of 77400

Gary, The stock market is very forward looking. It already knew that earnings growth for this quarter was going to be strong and already discounted that prior to the earnings coming out. That is to say, the market discounts earnings growth well in advance of the earnings growth actually being realized. Tech Stocks like CSCO are priced for perfection right now. Once a stock is priced for perfection, it is only a matter of time before it inevitably disappoints. Currently, this is what is going on in the market. Earnings have been getting better every quarter over the past few years. The market had already begun to anticipate that through the ballistic run-up in stock prices over the last three years. The old-fashioned way bull markets die is through higher interest rates and rising inflation. The new era is subject to the old rules of finance.