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To: Lucretius who wrote (66144)	2/8/2001 11:32:56 PM
From: SouthFloridaGuy	Read Replies (3) \| Respond to of 436258

Nomination of new clown to be added to the list...STEVE: To:Monty Lenard who wrote (48623) From: Steve Thursday, Feb 8, 2001 8:52 PM View Replies (2) \| Respond to of 48639 OT: What bubble? :) That was a very short lived problem, less than 6 months from 4th quarter 1999 to 1st quarter 2000. Productivity increases caused corporate profits to explode from 1996 to mid 2000. Coupled with low inflation increased valuations was a natural consequence. Low interest rates did not cause the bubble. When the Fed was accommodative until mid 1999 valuations were fairly appropriate given IBES's projected earnings growth rate out 5 years. The speculative frenzy from the last quarter of 1999 to early 2000 was largely a result of investor psychology running too far ahead of the fundamentals. If you notice we are now back to the relatively reasonable valuations of mid 1999 on the Nasdaq. The market will now look beyond the chasm of this mini-slowdown and start to price in the likely earnings growth rates from 2002 to 2007. We are still in the demographic induced boom of the baby boom generation. Over the next 15 years the largest intergenerational wealth transfer will occur exactly when the baby boomers are grandparents and in their peak spending years. Possible no-brainer sectors: biotech and healthcare, travel, optical communications, wireless, toys, luxury foods and dining, interior design and fashion.