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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Valley Girl who wrote (54861)	1/4/2001 3:34:26 PM
From: Dave	Respond to of 74651

...how tradable do you think this rally will be? Does it have legs to 3500? 4000? I wish I could predict that! For what it's worth, I would be surprised if the Nasdaq broke 3000 before continuing its slide, and would not be surprised if the rally has already peaked. But you asked for a prediction, so here's my gut feeling. The Fed's move yesterday reeked of panic. They know that the economy is out of their control. I think the investing public's confidence in the Fed's omnipotence is misplaced, and that that overconfidence will be shattered when yesterday's rally disintegrates. Once people stop believing that the Fed can bail them out if things go awry, capitulation can happen. You'll see people selling their Berkshire Hathaway, their General Electric, and their Coke so that they can afford to liquidate their underwater tech positions. Then the Dow and S&P indices will start to feel some pain. The Dow and S&P will continue to decline after the Nasdaq has begun to bounce around at a volatile bottom. I think it will be twenty years before the Nasdaq sees 5000 again. But what do I know? You can't predict this stuff. Dave