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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (72752)	9/8/2000 6:08:10 PM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 95453

Productivity Gains Trump Oil Larry's at it again, but this time he's not predicting when energy costs will fall only that they simply don't matter. cnbc.com Two quotes I liked: In the short run, the energy bubble will slow the economy and raise the reported inflation rate. But these effects will be short-lived. Actually, higher energy prices will stimulate much more natural gas production to accommodate the rising electricity demands of the wired economy. (Is Larry finally getting it? Kind of, but not really. Seems he's only focusing on 1/2 the equation.) The Internet is more important than OPEC. Or the Federal Reserve. Or outdated Phillips curve NAIRU-ista models. Keep the faith, investors. Faith is the spirit. (I love that quote. Keep the faith? Yes it does take quite a bit of faith to ingore both high energy costs and lofty Nasdaq valuations. If oil prices hit $40 I think "faith" will be tested.) ------------------------------------------------- They call it an oil bubble, yet virtually everyone says that the US (and many parts of the world) can handle the high prices. Perhaps OPEC will be successful in stablizing prices in the mid to high 20's after all. If that's the case I don't see how this can be called an "oil bubble". $35 yes, but $25 is still well above the historical price received. OT - In terms of techs I will be watching AMAT closely. It could very well double bottom first. However, where is the Nasdaq composite going to bottom out short term? You're right there are some great values out there long term, but overall techs are still overvalued as a group imho - especially if the growth rates are revised down (ala a slowing US or world economy).