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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Greg S. who wrote (43745)	12/19/2000 12:50:50 AM
From: rocklobster	Read Replies (1) \| Respond to of 57584

actually, if you take a $10 stock and it runs up 600% or 1000%, a sixty or ninety percent drop still leaves it at $40 or $10.. so the question is, did they really deserve to run up 600 or 1000 % to begin with.. the market, even at todays levels, has still appreciated enormously from levels of only two years ago... Nasdaq low in Oct, 1998 was below 1400.. today we are nearly double that. do you think if you told people in 1998 that they would see a 100% return in two years that they would think that was a bit overly optimistic.. so why is it that now we deserve these rich valuations, and Greenspan "must" defend these currently lofty prices.. I'm as much of a die hard bull as the next guy, and really want a rally, especially after I went aggressively long today, but I certainly don't expect Greenspan to bail out the market. He has much bigger problems... Fortunately for investors, the biggest one at this time may be the bad debt problems and junk bond issues, which when considered in total dollar volume, dwarf the equities markets. If Greenspan does ease, it will be more for these reasons, than any desire to boost equity values.. rok