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To: Crimson Ghost who wrote (68264)	4/25/2001 9:42:55 AM
From: goldworldnet	Respond to of 116764

<<On economic and foreign policy issues they are overwhelmingly in favor of the of the "free-market, free trade, US should dominate the world" policies persued by both Republicans and Democrats for 20 years.now. And why not -- media owners are among the richest people in the nation and benefit hugely from the economic status quo.>> Accurate, but incomplete. The financial media has played an active role in the formation of the current market bubble. Their participation in humping and dumping stocks with their sponsors is criminal. Best, josh

To: Crimson Ghost who wrote (68264)	4/25/2001 10:40:24 AM
From: Rarebird	Respond to of 116764

The big question these days is whether the recent tech rally in the Nasdaq is sustainable. Or, put another way, did the market bottom this past April 4th? Personally, my intuition is that the market has not yet bottomed. And I remain bearish going forward. The recent strength in the Nasdaq is really unprecedented and somewhat uncalled for given the dismal fundamentals in the tech sector. For the ten trading days ending April 19th, the Nasdaq rose 33.1%. This is the largest ten-day gain the Nasdaq has ever experienced since the index's inception in the 70's. It is also the largest 10-day gain any broad equity index, has ever experienced since 1932. Such momentum in tech is really attributable more to speculation than investing on fundamentals. An investor/trader needs to keep a healthy cynicism toward analyst recommendation changes and the financial media. As often is the case in rallies, the rally precedes analyst recommendation upgrades. It is very important that investors/traders realize that recommendation upgrades by brokerage firms are worthless if they are not accompanied by positive economic fundamentals. Corporate earnings for the second quarter will be among the worst in the last five years. The market has anticipated poor earnings for the first half of 2001, and that is the major reason for the sell-off we have witnessed. However, the market has not yet priced in poor earnings for the third and fourth quarters of this year. If earnings do not strengthen by the second half of the year, the market will most likely head lower, much lower. In order for a true bottom to occur, the majority of market participants must believe that the markets are heading lower. Only after the last market participant abandons hope that the markets will recover will a bear market truly have bottomed. Over the last five years, we witnessed one of the most extensive bull markets of all time. There is no reason to believe that the bear market that follows it will be of short duration. Capitulation occurs when markets reach the point when all sellers have disappeared, and we haven't yet seen a capitulation of the market. Based on the unprecedented Nasdaq rally, investors are still holding tech stocks in too high esteem. These markets IMHO are headed to a retest of the October 98 lows by the late summer/early fall of this year.