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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (4435)	12/22/2000 7:39:20 PM
From: Si_Detective	Respond to of 57684

Taken from other thread; from Briefing.com....excerpt: How does today's environment resemble 1987? And why is it a good thing? One of the reasons that late 1987 became a great investment opportunity is that nothing had changed fundamentally in the economy. If you are old enough to have been in the market 13 years ago, you may remember Ronald Regan on television on Black Monday shrugging his shoulders and saying "There's nothing wrong with the economy." There are certainly plenty of short term technology factors to point to for an explanation of why stocks prices are declining. A slowdown in PC sales, the slowing of internet growth, and the highly publicized failure of dot-com companies. But, in the larger picture, these are all very short term issues. Furthermore, nearly every negative warning for the larger technology stocks is a drastic reduction in expectations. Actual results are still quite good. The Nasdaq's pattern this year more likely reflects the reluctance of the public to chase "hot stocks." The last buyer in line was finally reached. And without the stream of new buyers willing to pay a higher price, tech stocks just collapsed. Just like 1987, the underlying economy is still quite good. Just as economic disaster didn't happen in 1988, it isn't likely in 2001. All that happened in 1987 is that speculative excess was wrung out. And that is probably all that happened in 2000. The willingness of people to overpay died, not underlying business conditions.