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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (23986)	12/11/2000 12:19:25 AM
From: Dealer	Respond to of 65232

STOLEN STUFF: Interesting interview with bears: Melville Straus and Robert Buettner interactive.wsj.com There is clearly a Y2K-related hangover in terms of technology-related capital spending. Clearly some of the deceleration isn't a secular decline, but a coming off a major hump of capital expenditures. On HLT, highly leveraged transactions, as you saw the junk market seize up, companies that were driving capex for telecommunications gear realized they had to pull back and conserve capital. That accentuated and accelerated the slowdown. ... We will get a reasonably good bear-market rally. You're coming to the end of the preannouncement period, and to an extent, the preannouncements are beginning to lose impact. You saw that with Motorola, which preannounced, fell and rallied. Intel preannounced. But these are so widely known that you aren't seeing 40% declines anymore; you start seeing 10%-15% declines and then rallies. The rally won't be a tidal wave of buying but a drying up of selling. ... Frankly, I am looking for Investors Business Daily, the daytraders' bible, to shut its doors. I don't want to give you the perception that we are sitting here with our hands in our pockets. The market correcting may influence the position size, but clearly we're prepared to invest in great companies as fair values become apparent.