Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Jerome who wrote (39931)	11/24/2000 12:06:29 AM
From: Dale Knipschield	Respond to of 70976

Jerome, My theory, I'm sure everyone will be happy to hear, is that this is part of a very high level conspiracy to drive the NASDAQ (New Economy) market down so that the "Big Money" that has traditionally been invested in the DOW (Old Economy) can begin to show some returns again. Take a look at this chart to see the divergence between the two which started taking place when the NASDAQ turned around in October of 1998. Until that time, the Dow and Nasdaq were rising pretty much in tune with one another. Now, all of a sudden, the tech stocks take off and begin a very strong drive through Jan of 1999. quote.yahoo.com From here on, you've kind of got to put yourself in the shoes of the old, ultra-rich conservatives. Their old economy stocks are suddenly going nowhere, while the young upstarts and the nouveau-rich are adding new wealth every day as the NASDAQ continues its strong gains through the winter and spring of 1999. By now, dot-com IPO madness is also spreading rapidly through the NASDAQ, creating new billionaires every week. Meanwhile, Mr. Old Money is still sitting on his GM, DuPont, Exxon, and Phillip Morris, which are now moving (relatively) backwards. Now, at their advanced ages, there is probably very little penis envy in these men, but there is a tremendous amount of of wealth envy, and these guys are getting very upset that their's is not ballooning (wealth, that is) like they know it deservedly should. They're also wondering why their investment bankers didn't put them into these "New Economy" stocks since they pay them so much money in the first place. In fact, some of these men probably ARE the investment bankers. But the high-tech mania is on a roll. PE's drive higher and higher through the fall of '99. Even Greenspan's "irrational exhuberance" snippet fails to dent the enthusiasm. More IPO billionaires are created each week. "This is madness", they cry, as they check their precipitous drop in the Forbes "Richest Men in America" honor-roll. Hey, its getting late here! Anybody want to finish this story? We need a meeting on a golf course, or a conference room, where a bunch of these "powerful men" tell their bankers and brokerage houses to bring this madness to an end. Individually, each brokerage house devises a story to tell its analysts that hope they'll buy into. Essentially, they convince the analysts that if they are to "save the market, and the free world as we know it" from a certain catastrophic collapse, they must work to bring the high-tech mania into check in a semi-orderly fashion. And there you are.......we've seen them at work since April, handing out bad advice, making bearish projections, but all in all, doing exactly what they were asked to do. High-techs are now high-tech wrecks, and "Old Economy" stocks now don't look so bad. At least they're holding their own. And now the kicker.....Big Daddy always has a hidden cache somewhere, and so HE has been picking up all these suddenly-cheap out-of-favor tech stocks, so that when they time is right to pump them up again, he can gain his rightful position in Forbes Honor-Roll. End of story............ P.S. If you see a movie like this come out of Hollywood, remember, it was MY idea! Regards, Knip