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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (86773)	11/14/2000 7:58:33 AM
From: PCSS	Respond to of 97611

Abby Joseph Cohen speaks: SUMMARY: Economic and profit growth are slowing to more moderate and sustainable rates. Core inflation remains mild mannered, and the likelihood of Federal Reserve action to boost interest rates has lessened notably. Equity valuations are the most attractive they have been all year. MORE DETAIL re: SUMMARY Financial market volatility has largely increased in response to two broad areas of uncertainty. First, the election campaign for the presidency did not end on election day. Second, energy users still face 3-4 more months of relatively high prices. The fundamental picture remains favorable. As expected, economic and profit growth have slowed from last winter's rapid pace, yet remain at or above trend rates. Inflation fears have cooled, despite the rise in energy prices. Yields on 5- and 10-year Treasury bonds have declined 100 basis points since March 2000. Equity valuation has improved since March. Aggregate measures have become more appealing due to the (1) decline in stock prices and (2) lower discount rate. In addition, (3) corporate profits are three quarters further along and are expected to grow throughout the coming year. The wide dispersions in relative valuation have narrowed, leading to better balance within the equity market. Michael