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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (32776)	10/4/2000 12:46:18 AM
From: Uncle Frank	Respond to of 54805

>> Will investor confidence return to the market within say the next five years? I've never lost mine, L. I'm just waiting for Mr. Market to realize that I've been right all along <gg>. uf

To: limtex who wrote (32776)	10/4/2000 11:27:10 AM
From: johndelvecchio	Read Replies (2) \| Respond to of 54805

UF - Now what? Sliding almost continously with some false ups since mid-March. Daily diet of bad news and frightened investors. Is this the climate of which rallies are made? Is there likely to be a beneficial increase in GDP growth. Is Mr G likely to lower interest rates and adopt a benign growth policy? Are there likely to be increased sales of tech products in Europe? Is Mr G likely to forgive the market for making him look so wrong for the last couple of years when the market was climbing. Is he likely to ease his death grip on the market and allow it to breath a little or is he determined to wreak his total revenge? Will investor confidence return to the market within say the next five years? You may be better off watching product cycles rather than economic cycles. Here is something I wrote in a report about Siebel Systems: "The dynamics of the economy have changed. Many businesses are no longer price-setters, but are price-takers. In the old economy, when companies began to lose pricing flexibility from customers, they began to restructure their business processes to remain profitable. In the wake of falling prices and increased competition from foreign markets, just-in-time inventory and mobile labor became crucial to reduce product costs and overhead and to improve productivity and profitability. Firms that adopted these streamlined business processes were able to develop an advantage relative to their competitors. Today, however, it is not uncommon to see zero-inventory business models, outsourced labor, and increased use of technology to enhance productivity. Now, information creates competitive advantage. Effective use of information to identify, attract, retain, and foster relationships with customers can help a firm gain a competitive edge..." In other words, companies need to spend on technology in order compete and grow profits. It has more to do with technology and less to do with economic cycles in my opinion. Best, John