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To: brunn who wrote (71541)3/9/2001 2:37:12 AM
From: fabian51  Respond to of 99985
 
<<My question is whether fair value between the indexes has been achieved. And can the NASDAQ fall much further without the DOW caving as well? Similarly, can the recession in the tech sector remain segregated from the overall economy?>>

Without adequate models, maybe we can observe this experiment and draw conclusions as it unfolds in
the near future. ng

WEL



To: brunn who wrote (71541)3/9/2001 11:11:55 AM
From: Doug  Respond to of 99985
 
brunn: Relative fair valuation has not been acheived as old is proven, new is hope. Sure Tech decline will not affect the economy; read the employment report.

Based on past sector bubbles, we have 4 phases. Phase 1 Peak & decline but firm hopes for recovery; Phase 2 Reality, low earnings, downsizing, Chapter 10 & Phase 3 Reengineeing & Mergers ( Lowest Earnings); Phase 4 Recovery of earnings

Currently we are just entering Phase 2.