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

To: PMG who wrote (32096)	6/28/2000 11:02:00 AM
From: Lee	Read Replies (2) \| Respond to of 50167

PMG,..Re:.IF 'new economy' stocks are still overvalued and IF this is leading to higher consumption and / or investment (which would be misdirected in this case) there SHOULD be measures taken to correct that development. You attached the right qualifier, if.<g> A lot of the values have come down substantially from the March levels though. Also, some important 'new economy' stocks are growing revenues 25% sequentially, so how does one value this type of growth? I don't think these values are contributing to consumption but their ROIC certainly contributes to investment. Also, I would expect consumption to abate somewhat in proportion to the fuel rates we have to pay now so GDP contribution from consumption may be down Q2 or Q3. However, I do expect investment to remain healthy because of the ROIC and the increasing global nature of the world economy. Re:.So A.G. could conclude that he should show that the time of increasing rates is not yet over... especially because he knows that the market will go through the roof if he makes a too good weather... Even if they do not raise rates anymore, I would not expect them to telegraph an all clear for the reasons you stated. They don't want to make perfect weather for the equity markets.<g> Cheers, Lee